C150187 Feasibility Study

• Contract/PO #: C150187
• Contractor Name: Young Creek Reservoir Company
• Contract Type: Loan
• Water District: 40
• County: Delta
• Loan Projects - Doc Type: Feasibility Study

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SMITH WILLIAMS CONSULTANTS, INC.

Table 2. Financial Summary

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Pro' ect cost
Existing loan at Surface Creek Bank (for and Rehab. work)
Total Pro' ect Cost
CWCB loan a ent amount, includin 10% loan reserve
Number of shareholders
Number of shares of stock
Current assessment er share
Estimated er annum
Estimated Cash Reserve er ear
Future assessment er share
Annual CWCB loan cost per acre-foot (annual storage of782 acre-feet - Reservoir 1-2)

$174,474.50
$42,651.19
$217,125.69
$10,269.27
24
60
100
$3,000
$3,000
$290.20
$13.13

Operation and maintenance costs are expected to decrease with rehabilitation of the reservoir basin
adjacent to the left abutment.

Creditworthiness: The Young Creek Reservoir Company has a current debt of $42,651.19, which is
attendant to work that was completed to evaluate the rehabilitation of the Young Creek Reservoir 1-2.
This loan has been secured on a short-term basis in hopes of replacing it with a CWCB loan at a more
favorable interest rate. It should be noted that that the CWCB loan will cover only a portion ($20,926.19)
of the existing Surface Creek Bank loan leaving a balance of $21,725 at the bank. Currently Young
Creek Reservoir Co. is servicing interest only on the loan identified above. Table 3 shows the financial
ratios for the Young Creek Reservoir Company and indicates an average to strong ability to repay to loan
secured for the project proposed.

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Table 3. Financial Ratios

With the Pro'ect
600% (Stron )

100%

(Average) 109%

(Strong)

Cash reserves to current ex ense 57%
Annual operating cost per acre-foot (1,012.38 acre-feet stored) $5.79

18%
$16.15

Weak
(Average)

Alternative Financing Considerations: The Young Creek Reservoir Company has investigated
alternative financing sources that include the Colorado River Water Conservation District (CRWCD), the
U.S. Fish and Wildlife Service (USFWS), the U.S. Department of Agriculture (USDA), and the Natural
Resource Conservation Service (NRCS). All of the entities investigated either have limitations that
preclude use of their funds for this project or have interest rates that are unacceptably high.

Young Creek Reservoir 1-2
Reservoir Rehabilitation Feasibility Study
September 2004

C:IDocumenls and Settingslblj\Local SeltingslTemporary 'nlemel Files\OLK7BlYoung Creek Feasibility Sludy(Rev 2) .doc

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