PROJ01869

• Contract/PO #: FS0065FX
• Contractor Name: Greeley and Loveland Irrigation Company
• Contract Type: Loan
• Water District: 0
• County: Larimer
• Loan Projects - Doc Type: Approval Letter

Greeley and Loveland Irrigation Company
January 22-23, 2003

Agenda Item 19c

Schedule - Final design is expected to begin in February 2003 with construction beginning in
October 2003 and completion in May 2004. Permits required will be a Corps of Engineers 404
permit, SEO design approval, and construction dewatering permit from the Water Quality Control
Division.

Financial Analvsis

The total estimated cost of the project is $1,345,000. GLlC has 1644 shares of stock with 47.6%
agricultural ownership and 52.4% municipal (low-income) ownership. Staff is recommending a
maximum loan amount of $1,000,000 (approximately 74% of estimated project cost) for 30 years at
a blended interest rate of 3.25% per annum. (After the 1% loan origination fee is charged, the total
loan funds available to the project from CWCS will be $990,099.01.)

Table 1 is a summary of the financial aspects of the project. A CWCS Small Project Loan of
$1,000,000 would have an annual payment of $57,950 (including the 10% reserve requirement) at
the loan terms of 3.25% for 30 years. The annual loan cost is $1.53 per acre-foot, based on an
average annual delivery of 37,812 acre-feet. GLlC is proposing to raise assessments by $40 per
share to cover the loan repayment.

Table 1. Financial Summary

Proiect Cost $1,345,000
Number of Shareholders 170
Number of Shares of Stock 1644
CWCB Loan Amount (30 years) $1,000,000
CWCB Loan Payment (includes 10% reserve) - Begin 2004 $57,950
Current Assessment per share (2002) $200
New Assessments per share (see note below) $240
Annual Loan Cost per acre-foot (aver. annual delivery: 37,812 ac-ft.) $1.53

Note: A recent history of annual assessments and proposed assessments is as follows:

Past Assessments
1999 $ 160
2000 $ 100*
2001 $ 170
2002 $ 200

Proposed Assessments
2003 $240

*Year 2000 assessments were lowered for one year to reflect receipt of approx. $100,000
from the sale of recreation rights on Boyd Lake.

Creditworthiness: The GLlC currently has two outstanding CWCB loans, an April 1998 loan for
$23,440, with a remaining amount of $14,927 and an annual payment of $2,778 through 2009; and
a May 1999 loan for $308,000, with a remaining amount of $282,154 and an annual payment of
$18,269 through 2029. Annual payments on both loans total $21,047.

Table 2 shows the Financial Ratios for the GLlC and indicates, with the exception of cash reserves,
average ability to repay the $1,000,000 ewcs loan.

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