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<br />Henry Bolen Ditch Company <br />July 9, 2004 (Rev. Aug. 6, 2004) <br />Page 3 of 5 <br /> <br />Agenda Item 14d <br /> <br />The engineering design and construction related services are provided by NRCS as in-kind <br />services. NRCS is expected to complete the final design by September 2004. Construction is <br />expected to begin October 2004 and to be completed in phases during 2004 and 2005. <br /> <br />Financial Analvsis <br /> <br />The total estimated cost of the project is $669,500. The Ditch conveys water, which is used <br />exclusively for agricultural purposes, and staff is recommending an initial loan in the maximum <br />amount of $515,500 during construction (approximately 77% of estimated total cost), reducing to <br />$128,750 once the project is complete and a receipt of 75 percent of the final construction cost from <br />NRCS (estimated $386,250). The recommended loan term is 30 years at an interest rate of 2.5%. <br /> <br />Table 1 shows a summary of the funding sources for the project: <br /> <br />Table 1. Project Funding Sources <br /> <br />Funding Source In-Kind/Grant Loan <br /> Initial Financing Phase <br />NRCS - PlanninQ and DesiQn $154,500 - <br />NRCS Construction Cost Share - - <br />CWCS Loan - $515,000 <br />Company - - <br />Total ($669,500) $154,500 $515,000 <br />Post-Construction Financing Phase <br />NRCS - Plannino and Desion $154,500 - <br />NRCS Construction Cost Share $386,250* - <br />CWCS Loan $128,750 <br />Company - - <br />Total ($669,500) $540,750 $128,750 <br /> <br />* Received after construction is complete from NRCS Salinity Control Project. <br /> <br />Table 2 is a summary of the financial aspects of the Project. A CWCS Loan of $128,750 would <br />have an annual payment of $6,766 (including the 10% reserve account) at the loan terms of 2.5% <br />for 30-years. This represents an annual loan cost of $2.70 per acre-foot for the Project based on an <br />average annual delivery of 2505 acre-feet of water. Since all other funding for the Project is in the <br />form of NRCS grants, the Company would have no other debt service on this Project. <br /> <br />Table 2. Financial Summary <br /> <br />Total Proiect Cost $669,500 <br />Proiect Construction Cost $515,000 <br />CWCS Post-construction Loan Amount $128,750 <br />CWCS Loan Payment Amount (includes 10% reserve) $6,766 <br />New Assessment per cfs decreed $537 <br />Annual Project Cost per acre-foot (based upon 2505 acre-ft) $2.70Iac-ft <br />