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<br />CHAPTER VIII <br /> <br />FINANCIAL PROGRAM <br /> <br />The Lake Loveland outlet tunnel rehabilitation will be <br />financed or paid for by water users assessments. The assets of <br />the Companies will be used as collateral for the loans, In <br />addition to revenues gained by water users assessment, the <br />Greeley and Loveland Irrigation Company can obtain revenue by <br />the sale of assets, such as land, water, etc, The sale of assets <br />is not a guaranteed revenue, so it is not used in the financial <br />project payoff schedule. <br /> <br />As seen in Exhibit "E", the total O&M annual cost is <br />$262,679, This figure is not anticipated to increase due to the <br />outlet tunnel rehabilitation. Table 1 indicates this zero in- <br />crease in O&M costs. A detailed breakdown of all O&M cost is <br />also provided in Exhibit "E". <br /> <br />As seen in Exhibit "E", the total present debt of the company <br />is $1,337,015. Since the writing of Exhibit "E", the accounts <br />payable figure of $6,014 and notes payable figure of $8,100 have <br />been paid. The accrued interest payable figure of $30,713 and <br />note payable to United Bank of Greeley figure of $770,000 is the <br />responsibility of and paid by the City of Greeley as described in <br />Notes 7 and 8 of Exhibit "E". In addition, the note payable to <br />Wichita Bank for Cooperatives, the figure of $426,532 has been <br />reduced to $393,000. <br /> <br />Through annual users assessments, a 10% annual reduction of <br />the present debt is obtained. In addition, through the sale of <br />assets the Company can further reduce this present debt, <br /> <br />Presently there are 1,640 shares of stock in the company. <br />The 1988 cost per share for its users is $100. Each share <br />represents approximately 33 acre feet of adjudicated water <br />rights. During the past seven years, the annual cost per share <br />has ranged from $95 to $115. Assuming a payment of $14,569.54 <br />per annum for the CWCB $250,000 loan (see Exhibit "K"), and <br />approximately $20,000 per annum for the remaining $200,000 loan <br />to be obtained from a financial institution such as the United <br />Bank of Greeley or the Wichita Bank for Cooperatives, a total <br />annual payment of approximately $35,000 is anticipated. The cost <br />per share would increase from $100 to $121 per year, The users <br />cost per share is comparable to previous years and is relatively <br />low when compared to water costs of other irrigation companies. <br /> <br />10 <br />