PROJC01422 ‎(2)‎

• Contract/PO #: C150133
• Contractor Name: Low Line Ditch Company, The
• Contract Type: Loan
• Water District: 64
• County: Logan
• Bill Number: MC3
• Loan Projects - Doc Type: Approval Letter

Low Line Ditch Company
January 22-23, 2003

Agenda Item 19h
(Updated January 28, 2003)

Selected Alternative 3 consists of the following:

. Four recharge ponds will be constructed along the Low Line Ditch. Ponds will be located
on ground that is considered low value and currently not used for growing irrigated
crops,

. Each pond will have a turnout built into the ditch which will include a measuring device
with a recorder. Proper measurement is a requirement of the Division of Water
Resources.

. The augmentation well would be drilled away from the river and next to the ditch. The
well could be pumped directly into the Low Line ditch or by using an existing drainage
way could be pumped into the South Platte River.

The implementation schedule calls for completion of financing arrangements and final design in
January 2003. Construction would be completed by March 2003.

Financial Analvsis
The total estimated cost of the project is $105,000 (including engineering costs). Water is used
for agricultural purposes and the Staff is recommending a Small Project loan in maximum
amount of $94,500. The recommended loan terms are 30 years at 2.75% or 20 years at 2.5%,
at the borrower's option.

Table 1 is a summary of the financial aspects of the project with a $94,500 CWCS Loan. The
annual payment would be $5,134 (including the j 0% reserve requirement) at the loan terms of
2.75% for 30 years. This represents $0.77 per acre-foot, based on average annual diversions of
6,650 acre-feet.

Table 1. Financial Summary

Proiect Cost $105,000
Number of Shareholders 14
Number of Shares of Stock 320
CWCS Loan Amount $94,500
CWCS Loan Pavment (includes 10% reserve) $5,134
Current assessment per share $25
New assessment per share $41
Annual Loan Cost per acre-foot (Average diversions 6,650 ac-ft.) $0.77

Credit worthiness: The LLDC has no existing debt. Table 2 shows the Financial Ratios for the
LLDC and indicates, with the exception of Cash Reserves, average to strong ability to repay a
$94,500 cwes loan with the project in place.

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