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I I I I I I I I I I I The analysis in Table 3. Colwnn (7). includes payment of $2.626 to a Project Reserve Fund over a ten year period to provide for one yearly payment in reserve. This paymem will be placed in a "cenificate of deposit" and we have assumed a rare of rerum of 5% interest on the certificate of deposit which is included in column (9) as income. The yearly payment to the CWCB. staning in 2001. is sho,",n in Colwnn (5) and the 10% payment required of the Company during the first two years of the project are included in Colwnn (6). The total income and expenses 3fe indicated in Columns (9) and (10) with the remaining amount for each year shown in Column (11). The remaining amount is the difference between the total income and expenses with the Net Fund Reserve, Column (12), being the sum of the remaining amount and the Net Fund Reserve from the previous year. The assessment levels were set to maintain A Net Fund Reserve of approximately $lO,OClO to handle variations in the Company's normal operating expenses. This reserve is approximately equal to 25% ofmeir normal operating expenses. As indicated in Table 3, me assessments will have [0 be maintained at me currem $70 per share and will remain at nearly mat level throughout me loan period. As can be seen from me table. me total assessments paid per share of stock from me year 1999 to 2030 will be $2119. Credit \Vorthine..lis. The Company currently has no outstanding loans. The Company has conducted business with me Eaton Bank on a limited basis. However. they have not borrowed large sums of money in me past as they have not affected any major rehabilitarion of lhe system. Alternative Financing Considerations. The Company has investigared alternative fmancing wim me Eaton Bank. The bank has indicated lhey would consider a loan for me Company after review of meir tinancial status. The loan would be for 20 years at Prime Rate adjusted every five years. Included in Appendix H is a letter from the bank stating their position. OPI:"iION OF FEASllllLITY There do not appear to be signiticam roadblocks which would keep me Owl Creek Supply & Irrigation Company from successfully completing mis project. The project does raise me assessment level assessments from $50 per share to S70 per share of stock which was me assessment level in 1999 in anticipation of me project. The benefit is me Company can more successfully manage the water throughout the system including the accurate measuremem of warer deliveries to each shareholder. This is nOI as critical during a wet year as it would be in a dry year. Owl Creek Feasibility Page 18