C150190 Feasibility Study

• Contract/PO #: C150190
• Contractor Name: Beaver Reservoir Company
• Contract Type: Loan
• Water District: 59
• County: Gunnison
• Loan Projects - Doc Type: Feasibility Study

The BRC is requesting a 30-year loan from the CWCB. The
standard agricultural lending rate would be 2.5%, resulting in
annual payments of $6,140.00. To this would be added $610.00 per
year for the first 10 years to fund the emergency reserve account,
for a total annual cost of $6,750.00. Table 3 is a summary of the
financial aspects of the project. Annual assessments will increase
from $21.07 per share, up to $25.29 per share with an Emergency
Loan of $128,500.00. This represents an annual assessment increase
of $6,750.00, or $2.77 per acre foot, based on average annual
diversions 1620 acre feet.

Table 3. Financial Summary

Project Cost $142,800.00
Loan Amount ( 90% of Project Costs) $128,500.00
CWCB Loan Payment Amount, including 10% $6,750.00
loan reserve
Number of Shareholders 3
Number of Shares of Stock 1,600
Current Assessment Per Share $21.07
Future Assessment Per Share $25.29
Annual Project Cost per acre foot (average $2.77
annual diversions: 1,620 acre feet)

Since all
existing funds,
this project.
decrease with
the Company's

other funding for the project is provided from
the Company would not have other debt service on
Operation and maintenance costs are expected to
the new outlet structure, and can be accommodated by
existing budget.

CREDIT WORTHINESS

BRC has an existing debt with the CWCB in the current amount
of $377,445.00 which is being repaid at $17,187.00 per year with 30
years of payments remaining. BRC also collects $1,718 per year for
the emergency reserve account. The minimal increase in the annual
payment necessary to repay the new loan requested by BRC indicates
average to strong ability to repay with the project in place.

ALTERNATIVE FINANCING CONSIDERATIONS

The BRC has investigated alternative financing sources and
found that it would result in terms of repayment over a short
period of time and an interest rate of 6-7% per annum, causing the

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