C153726 Feasibility Study

• Contract/PO #: C153726
• Contractor Name: Tremont Mutual Ditch Company
• Contract Type: Loan
• Water District: 1
• County: Morgan
• Bill Number: SPL
• Loan Projects - Doc Type: Feasibility Study

Feasibility of the Repair of the
Tremont Mutual Ditch Company Headgate
April 19, 1996

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(averaging $7100 per year) from the PWI contract is shown on page
4 of Appendix D. A portion of this income can be used to repay
the loan to the CWCB. The Company would retain a cash reserve of
approximately $2000 for future capital expenditures and repairs.

A table showing cash flow for a $45,000 CWCB loan at 4 % interest
over a 20-year repayment period is included in the report.
Annual debt service amounts to $1.66/share ($3310 / 2000 shares)
and $2.12 per acre foot diverted in 1995. The annual income from
PWI of $7l00 is more than sufficient to cover the $33l0 debt
service.

Collateral

The TMDC has the following collateral it can offer for the CWCB
loan, in this order of preference:

1. A portion of the revenues from PWI. Running
fees have historically brought in revenues
between $5,000 and $lO,OOO annually. This
could be approved by vote of the
stockholders.

2. A collateral interest in assessments of the TMDC
stockholders. This could be approved by vote of the
stockholders. .

3. The project itself. The project will be
owned by the TMDC and can be offered by vote
of the Stockholders.