LPPD000469

• Contract/PO #: C150106
• Contractor Name: Glenwood Irrigation Company c/o The Thompson Glen Irrigation Company
• Contract Type: Loan
• Water District: 39
• County: Garfield
• Bill Number: SPL
• Loan Projects - Doc Type: Approval Letter

Glenwood Irrigation Company
May 20-21, 2002

Agenda Item 12b.
(Updated May 23, 2002)

Table 1: GIC Share Ownership and Blended Interest Rate

Shareholder Rate Category Year 2001 Rate # Shares GIC Rate x Shares
Aqricultural Aqricultural 2.75% 573.5 1577
Residential Municipal 4.75% 917.5 4358
Subdivisions Hiqh Income
Totals 1,500 5935
30-year blended rate for the GIC I Blended Rate = 5935 /1500 shares 4%

Alternative financing sources: The Company actively sought alternative financing. They were
not able to obtain a grant from the NRCS to cover project planning and design or completion of
the Feasibility Study. The GIC has applied for a $15,000 grant from the Colorado River Water
Conservation District. Table 2 is a summary of funding sources for the project:

Table 2: Project Funding Sources

Funding Source Grant Loan
Colorado River WCD (Grant requested) $15,000
GIC* $113,250
CWCB $386,000
Total ($514,250*) $128,250 $386,000

(*The GIC will also cover any costs exceeding the estimated project cost.)

Table 3 is a summary of the financial aspects of the project. A CWCB Loan of $386,000 would
have an annual payment of $24,554 (including the 10% reserve requirement) at the loan terms
of 4% for 30 years. This represents $3.72 per acre-foot, based on year 2000 diversions of
6,600 acre-feet.

Table 3. Financial Summary

Proiect Cost $514,250
Number of Shareholders 69
Number of Shares of Stock 1500'
CWCB Loan Amount $386,000
CWCB Loan Payment (includes 10% reserve) $24,554
Current Assessment per share $22
New Assessments per share $38
Annual Loan Cost per acre-foot (YR 2000 diversions: 6,600 acre-feet.) $3.72

Credit worthiness: The GIC recently had a construction loan with the Alpine Bank of
Glenwood Springs for which all payments were made as agreed. That loan was paid off with the
proceeds from the $85,000 CWCB loan that was approved in 2001. Table 4 shows the
Financial Ratios for the GIC and indicates, with the exception of Cash Reserves, strong ability
to repay the additional $386K CWCB loan with the project in place.

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