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<br />The Company will be the lead for the financing, design, and construction of the project and will <br />be the entity entering into contracts and agreements for the services to be provided. <br /> <br />Financial Analysis <br /> <br />The Company is applying for a loan from the CWCB in amount of $515,000, to cover total cost <br />of all construction and materials. Upon final approval of the constructed Project by NRCS, <br />NRCS will pay to the Company the 75% cost share, which will be used by Company to pay <br />down the loan amount to approximately $128,750. <br />Table 2. Sources of Funding <br /> <br />Entity Grant Short-term Long-term <br /> Loan loan <br />CWCB $0 $515,000 $128,750 <br />Company $0 $0 $0 <br />NRCS $386,250 $0 $0 <br />Totals $386,250 $515,000 $128,750 <br /> <br />The Company will cover any costs that exceed the NRCS estimated Project cost. <br /> <br />The Company is requesting a 30-year loan from the CWCB. The standard agricultural lending <br />rate would be 2.5%, resulting in annual payments of $6,151. The Company will fund a payment <br />reserve account at the outset of the Project in the amount of $6,151 and increase the reserve <br />account to $12,302 over 3 years. <br /> <br />Table 3 is a summary of the financial aspects of the Project. <br /> <br />Table 3. Financial Summary <br /> <br />Project Cost <br />Loan Amount (25% of Project Cost) <br />CWCB Loan Payment Amount <br />CFS of water to be carried on behalf of the Members <br />Annual Commitment for repayment per cfs of water to be carried <br />Annual Project Cost per acre-foot (based upon 2505 acre-ft) <br /> <br />$515,000 <br />$128,750 <br />6,151 <br />12.58 <br />$489 <br />$2.46 <br /> <br />Since all other funding for the Project is in the form of grants, the Company would have no other <br />debt service on this Project. <br />The Company was incorporated in June of 2003 for the purpose of undertaking the Project. <br />Therefore, the Company has no financial history. The Company has no existing debt. The <br />owners of the Ditch spent an average of $300 per year on maintenance costs in the recent past. <br />Maintenance costs are expected to be about the same or less with the new pipeline, and can be <br />accommodated by Company assessments to Members pursuant to the Bylaws. The Company <br />checking account at the Mancos Valley Bank presently has a balance of $130 as a reserve for <br />maintenance expenses <br /> <br />8 <br />