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<br />North Poudre Irrigation Company <br />March 16-17,2004 <br /> <br />Agenda Item 25c <br /> <br />Table 1. Financial Summary <br /> <br />Project Cost $760,000 <br />Number of Shareholders 646 <br />Number of Shares of Stock 1 0000 <br />CWCB Loan Amount (20 years) $608,000 <br />CWCB Loan Payment (includes 10% reserve) $45,999 <br />Current Assessment oer share (2003) $85 <br />New Assessments oer share $90 <br />Annual Cost of Loan per AF (additional storaqe of 417 ac-ft.) $110.30 <br /> <br />Creditworthiness: NPIC currently has 7 loans in repayment with the CWCB, dating from 1982 to <br />1989, and has made all scheduled payments on each of these loans. They have no other <br />outstanding loans at this time. In 2003 the CWCB debt retirement accounted for $33 of the $85 <br />assessment. The total contract amount for these loans is $ 5,490,761 with annual payments <br />totaling $289,490. In addition, NPIC will be closing out a 2001 construction loan for Reservoirs 5 & <br />6, and Indian Creek, with expenditures to date of $637,778. Total CWCB loan payments, including <br />the requested $608,000 new loan for Miner's Lake, are summarized below: <br /> <br />Loan No. Contract Date Principal Terms Annual Payments (1) <br />Existing Loans 1982 - 1999 $ 5,490,761 2.0-5.0%, 20-40 yrs $289,490 <br />C15013 10/01/01 $ 623,778 (2) 4.04% - 20 yrs 46,061 <br /> " <br />New Loan - $ 608,000 3.25% - 20 yrs 41,818 <br />Totals - $ 6,722,539 - $377,369 <br /> <br />) <br /> <br />(1) Does not include 10% reserve requirements <br />(2) Loan authorization is for $1,107,000, but will be closed out at $ 623,778 <br /> <br />NPIC also maintains and draws funds from a $500,000 unsecured line of credit from the First <br />National Bank in Fort Collins, as needed. The loan amount is included in the next year's projected <br />expenses and repaid when the first assessments are received. <br /> <br />Economic Analysis: The economic benefit of the project is considerable. By rehabilitating the <br />reservoir NPIC will regain 417 acre-feet of water. Using the current estimated cost of building new <br />storage of $2,500/AF the value of the project is $1,042,500 compared to the estimated cost of <br />$760,000. Using an estimated total project cost of $760,000 the cost of the 674 acre-feet of water <br />annually is $78 per acre-foot. The recent drought has created large fluctuations in the price of <br />water. During the past year (2003) water sold for as much as $400 per acre-foot. <br /> <br />Table 2 shows the Financial Ratios for the NPIC, and indicates average ability overall to repay the <br />$608,000 CWCB loan with the increased assessments. <br /> <br />Page 4 of 6 <br />