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<br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />two counties have a set mill levy to provide for the loan repayment. Due to the increased property <br />valuation in both counties the portion paid by the mill levy has increased which decreases the <br />amount paid by the irrigation companies. <br /> <br />Table 10 shows the cash flow and armual financial schedule for the Company's operations which <br />includes the proposed $1,250,100 CWCB loan at 3.75 % interest over a 30-year repayment <br />period. The schedule also includes the 10% share of the project which will have to be paid by the <br />stockholders during design and construction in 1999. <br /> <br />Colm (1) , (2), (3), and (4) in the fmancia.! schedule indicates the projected assessments for the <br />AI, Bl, and B2 shares of stock and the total income derived from the assessments. The <br />assessments shown for 1997 and 1998 are the actual assessments and the assessment for 1999 is <br />the projected level as the stockholders voted for a maximum assessment of $15 per share. The <br />Company has a small amount of additional income each year as shown in the financial schedule <br />in column (5). <br /> <br />The yearly expenses are listed in columns (6) through (9). Column (6) is the operation and <br />maintenance expenses with the amount from the 1997 financial schedule being used as a starting <br />point. The amount in 1997 is higher than nonnal as it includes repair work conducted on Elk <br />Wallows Dam. The 0 & M expenses were reduced in 1998 to reflect the norma.! expenses of <br />operating the company and doing routine maintenance. Column (7) is the cost of the temporary <br />breach and feasibility study including engineering costs, surveying, and the geotechnical <br />investigations that were conducted in 1998, Column (8) is the Company's 10% portion of the <br />project which is shown to start in 1999 when the construction begins. For purposes of this <br />analysis the 10 % share was considered to be funded by a 5 year private loan at 8 % interest as <br />shown in column (8). The payment shown is the armuaI payment for a $70,125 loan which is the <br />portion remaining of the $138,900 the Company must contribute toward the project less the <br />amount spent on the breach, engineering, surveying, and the geotechnical investigation as shown <br />in column (7). Column (9) is the armual payment to the CWCB for repayment of the 30 year loan. <br /> <br />Column (10) entitled "Project Reserve" is equal to one yearly loan payment that is accrued by <br />saving 10% of the yearly loan payment over a ten year period of time. After 2008 this reserve <br />is fully funded and is maintained without any deductions from the income side of the balance <br />sheet. This fund is assumed to accrue interest of 5 % which is used as income in the balance sheet. <br /> <br />Column (11) entitled "Remaining Amount" is me sum of all revenue and expenses for that year <br />and includes any cash reserve from the previous year. This does not include the funds in the <br />"Project Reserve" but does include the interest llccrued and any expense to fund the reserve. <br /> <br />Table 10 was produced maintaining a "Remaining Amount" equal to roughIy 25% of the <br />Company's operations and maintenance expenses. This is similar to the way the company has <br />operated over the past few years if the reserves for reservoir repair are not included. <br /> <br />As can be seen from Table 10 the assessments are projected to rise from $5.00 per share to <br /> <br />Carl Smith Dam Feasibility <br /> <br />Page 30 <br />