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I I I I I I I I I I I I I I I I I I I Conservation Board (CWCB) for 30 years at 3.75% interest. The loan has been accepted for recommendation to the Colorado General Assembly for consideration in the 1997 Construction Fund Bill. Revenue for operations and payment of loans is derived from assessments on 1682 shares of outstanding stock. Assessments are presented to stockholders and approved at the annual stockholders meeting held in January of each year. The 1996 assessment was $7.00 per share of stock. The 1997 assessment for the stockholders in the Woods Lake Mutual Water & Irrigation Company will be increased to $15.00 per share to cover added operation expenses and rehabilitation expenses for Woods Lake. The financial condition of the company is solid :It the present time. The company has no other obligations other than those listed in the financial statement found in Appendix H. There are no current long term loan obligations. Table 1 shows the cash flow and annual financial schedule for the Company's operations which includes the proposed $188,000 CWCB loan at 3.75 % interest over a 30-year repayment period. The schedule also includes the 25 % share of the project which will have to be paid by the stockholders during design and construction. For purposes of this analysis the 25 % share and the one year payment of $10,545 which must be placed in a "certificate of deposit" was assumed to be raised with assessments in 1997 and 1998 rather than securing a loan and spreading the cost over several years. Whether the Company secures a short term loan for the up front costs has not been determined at this time. Table 1 shows the assessment that is levied against all 1,682 shares of stock, the revenue from special assessments and other income sources, :lnd the operation and maintenance costs. The column entitled "Remaining Amount" is the sum of all revenue and expenses for that year with the "Net Fund Reserve" being the sum of the previous year's "Net Fund Reserve"including interest at 5 % plus the current year's remaining amount. The Company in 1996 had a "Net Fund Reserve" of approximately $3,700. A total "Net Fund Reserve" of at least $14,245 was thus carried throughout the schedule to account for a normal reserve of $3,700 and $10,545 for the "certificate of deposit" equal to one yearly payment to the CWCR As can be seen from Table 1, the assessments are projected to rise from $7.00 per share to $21.60 per share of stock at the end of the loan period in 2026. A maximum assessment of approximately $46.00 is required in 1998 to pay for the Company's 25% project share plus the extra payment to be placed in the certificate of deposit. This is an increase of 557% for the one year increase in 1998 and an increase of 209% from the current level for the increase from 1996 to 2026. The increases noted are not all due to the project but also from the projected inflation. The average increase to make the $10,545 payment each year is an increase of $6.27 per share of stock. Woods Lake Feasibility Page 7