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<br />Job number 03903 Mu~ ENGINEERING & SURVEYING COMPANY <br />April 29, 2003 <br />Willow Heights Irrigation Company <br />Feasibility Study for Reconstruction of the Irrigation System, ewes funding, <br /> <br />Table 3. Financial Summary <br /> <br />Proiect Cost $115,000 <br />Loan Amount (~ of Proiect Cost $103,500 <br />ewes Loan Payment Amount, includina 10% loan reserve $6386 <br />Number of Shareholders 98 <br />Number of Shares of Stock 104 <br />Current Assessment Def Share $65 <br />Future Assessment Der Share $120 <br />Annual Project Cost per acre-foot $25 <br />I (Averaoe annual diversions: 257 acre-feet I <br /> <br />'t qo 'I. &':=,. ~1'1/'1 <br /> <br />Since funding for the project is in the form of a single loan from ewes, the Company would <br />have no other debt service on this project. Operation and maintenance costs are expected to <br />decrease with the new system, and can be accommodated by the Company's existing budget. <br /> <br />Credit worthiness: WHIC has no existing debt. TaBle 1 3AOW3 tMe Finoneiol Rolies for Wl>cIlC <br />3'ld indicatGi il\terilge to itrOflg ilbility to repay \;./itn tne p"o.jDt"'~ in p1iilC'e ~. ~ . <t (11/' ~ <br /> <br />Alternative financing considerations: WHIC has investigated alternative financing sources.. <br />Local banks will not commit to long term fixed rate loans and AR Loans are too risky for WHIC. <br /> <br />Collateral: As security for the CWCS loan, the WHIC can pledge assessment income. the <br />project structures and pipeline, owned water rights and owned property. <br /> <br />Economic Analysis <br /> <br />The economic benefits are mostly cost of maintenance and repairs. Some economic benefit in <br />the form of shareholder property values may occur but that is very intangible. <br /> <br />Social and Physical Impacts <br /> <br />The project will have no significant social impacts. since it will assure the continued operation of <br />a currently existing irrigation system. The project will have minor physical impacts. once <br />construction is complete. The new system will be in the same location only at a shallower depth <br />than at present. <br /> <br />Page 12 of 13 <br />