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'.'..... . . . ~ REVISED 6/18/98 9. Financial Plan The loan amount requested from the CWCB is seventy-five percent of the revised total project cost of $505,000, which is $378,750. The remaining twenty-five percent is $126,250. The CWCB loan payment would be paid for by an increase in the annual assessments. At a rate of3.75% for 30 years, the payment for principle and interest on $378,750 is $21,243.19, or $4.53 per share for 4690 shares. The current assessment on the Buffalo is approximately $5.00 annually per share. The annual assessment would be increased by $4.53 per share, to bring the total to $9.53, The Company presently has no outstanding debt. The additional $126,250 which amounts to about $26.92 per share, would be paid in one of two ways. 1.) Require each share holder to pay his share of the cost at the time payment is due to the contractor. The amount due would be based on the number of shares owned. 2.) Obtain a conventional bank loan as a corporation and adjust annual assessments as needed to cover the annual payment. The loan payment per share would, of course, be subject to terms. As rough estimate, at an interest rate of 9% for twenty years, the cost per share would be $2.95, and at 7% for thirty years, the cost would be $2.17 per share. At the most, the total assessment would be increased to just under $ 12.50 per shllfe, which is about the same as the other canals in the area. At $12.48/share with an average yield of 3.74 acre-feet per share, the total cost of the water would be about $3.34 per acre-foot delivered. This appears to be a reasonable cost per acre-foot for irrigation water in the lower Arkansas Basin, Attached is a "Schedule of Revenue and Expenditures" developed by CWCB staff based on the information provided by the Buffalo Mutual Irrigation Company.