C153445 Feasibility Study - Laserfiche WebLink

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CHAPTER VIII - FINANCIAL PROGRAM The allocation of project costs is all to irrigation, which simply means that Summit is responsible for the entire amount, $70,000. Assuming that CWCB funds 50% of. the cost at'a service charge of 5% for 40 years, the ~nnualpayment is $2,039.00. An additional $0.50 per'share will be added for the emergency reserve funds. Summit has about $10,000 in cash so an additional' $25,000 will be borrowed from the Wichita Bank of Cooperatives. The. Wichita Bank loan will be at about 12% for 15 years. SUmmit presently has a loan of $25,327 with the Wichita Bank, the addi- tional amount will be added to old loan for a total of $50,327. The entire amount will be refinanced at 12% for 15 years (interest rate is an estimate), which is $7,390 per year. Rather than do an incremental analysis whiCh would show the incremental cost of the Summit Reservoir improvements; the expenses for Summit will be estimated with the new loans. By estimating total expenses the i~pact of refinancing the previous balance with Wichita Bank can be more easily seen. Table VIII-A shows the esti- mated expenses for 1984, as if debt service was due on the loans. TABLE VIII-A Summit Reservoir and Irrigation Company Estimated Expenses Item Year Expense Wages Insurance Office Expense ~Iaintenance Electric & Telephone Hileage Legal & Accounting FICA Emergency Operating Fund CWCB Advance Wichita Bank Loan $12,000 600 200 10,000 700 5,500 500 500 200 2,039 7,390 $39,629 The estimated cost of $99.00 per ability to repay. CWCB. future cost of $39,629 per year results in a share per year. This amount is within Summit's The evaluation does justify funding by the Table VIII-B shows the payout schedule for repayment of the funds required to commplish the repairs. The Annual Assessment was assumed to be $105/share the first year then increase at 0.5% per year. Operation and mainten~nce was increased at a rate of 1.0%' per year.