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<br />'" <br /> <br />;J <br /> <br />Terrace Irrigation Company <br />March 17,2004 <br /> <br />Agenda Item 25e, <br /> <br />. (approximately 90% of the total project cost). Water delivered by TIC is solely for agricultural <br />use and therefore qualifies for CWCB's agricultural rate of2.S% for a 30-year term. <br /> <br />Table I is a summary of the fmancial aspects ofthe project based on a $243,000 CWCB Loan. <br />The annual payment would be $12,771 (including a 10% reserve requirement) at a loan term of <br />2.5% for 30-years. Annual assessments will be increased from $21S to $231per share. This $16 <br />assessment increase represents only $0.83 per acre-foot annual loan cost, based on average <br />annual diversions of IS,339 acre-feet. <br /> <br />a e " manCIa ummarv <br />Proj ect Cost $270,000 <br />Loan Amount (90% of Project Cost) $243,000 <br />CWCB Loan Payment Amount, including 10% loan reserve $12,771 <br />Number of Shareholders 27 <br />Number of Shares of Stock 831-7/8 <br />Current Assessment per Share $21S <br />Future Assessment per Share $231 <br />Annual Loan Cost per acre-foot $0.83 <br />(Average annual diversions: 15,339 acre-feet) <br /> <br />T bl 1 F" . IS <br /> <br />. <br /> <br />Credit worthiness: TIC has a number of long-term debts, with a current outstanding balance of <br />$1,887,209.00. TIC is current on all outstanding debt. The following is a summary of TIC <br />current outstanding debt: <br /> <br /> a Ie " I utstandml! Debt ummary <br />Grantor Type of Loan Outstanding Annual Maturity <br /> Balance Payment Date <br />CWCB Dam Outlet $361,83S.00 $26,310.00 9-1-2021 <br /> Repair <br />CWCB Ditch Lining $1,499,39S.00 $96,162.00 6-1-2034 <br />Farmers Home Agriculture $26,44S.03 $4,407.00 <br />Adm. <br />Total: $1,887,209.00 $126,879.00 <br /> <br />Tb 2TCO <br /> <br />S <br /> <br />Based on the figures provided above, TIC has a current yearly loan obligation of$126,879. In <br />addition, TIC has approximately $S6,S40 in general operating expenses for a total yearly expense <br />of$183,419. With the proposed project in-place, their yearly expense will increase to $196,190, <br />to cover the cost of the new loan. Based on the new assessment rate of $231 per share and other <br />interest earnings, TIC will generate $201,430 in revenue. <br /> <br />. <br /> <br />Table 3 shows the Financial Ratios and indicates, with the project in-place, an average or strong <br />ability to repay the loan. <br /> <br />3 <br />