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<br />Overland Ditch and Reservoir Company <br />July 12, 2005 <br />Page 4 of 5 <br /> <br />Agenda Item 6a <br /> <br />agricultural interest rate when blended with low income (Hotchkiss) does not change from the 2.5% <br />rate. Interest rates are determined based on CWCB Loan Policy # 7. <br /> <br />In addition to the requested loan, the Company will be borrowing the remaining 10% un-funded portion <br />of the Project. It is anticipated that the additional $125,555 will be financed by a local bank for 10 years <br />at 8% per annum. This will result in an additional $18,711 in annual payments for the first 10 years. <br /> <br />The total debt service obligation forthis Project represents an annual cost of $80.43/ac-ft for the <br />additional 971 AF of reservoir storage during the first 10 years of repayment. <br /> <br />Table 1. Financial Summary of Project <br /> <br /> <br />$1,255,555 <br />$1,130,000 <br />$53,988 <br />$59,387 <br />$125,555 <br />$18,711 <br />$78,098 <br />$7.81/share <br />$80.43/ac-ft <br /> <br />Creditworthiness: The Company has two outstanding CWCB loans. The Company has made all <br />scheduled loan payments with the exception of a four CWCB approved deferrals: <br /> <br />1. 1994 deferral requested due to "excessive litigation expenses related to by-pass flow release <br />requirements by the Forest Service as a condition of a construction permit to rehabilitate the <br />dam". <br />2. 1996 deferral requested due to "dry conditions and by-pass flow requirements imposed by the. <br />Forest Service" <br />3. 1997 deferral requested due to "legal expenses associated wit~ by-pass requirements imposed <br />by the Forest Service". . <br />4. 2002 deferral requested due to "unexpected financial difficulties; in the form of severe and <br />extended drought". <br /> <br />Summarv of all loans for the Overland. Reservoir: Adding all debt service requirements for this <br />Reservoir totals a balance of $2,241 ,336 and an annual debt obligation of $145,889 or $20.34/acre-foot <br />(based on 7,171 AF of reservoir storage) from 2008 through 2018 and then the annual debt obligation <br />drops to $86,524 or $12.07/acre-foot. <br /> <br />Loan Date Original Terms Annual Balance Years Year <br />Number Amount Payment Remaining Paid Off <br />#C153307 1979 $850,000 2% - 40yr *$32,536 $654,612 26 2030 <br />#C153527 1988 $541,947 5% - 30yr $35,255 $331,169 13 2018 <br />New CWCB 2007 $1,130,000 2.5% - 30yr **$59,387 $1,130,000 30 2037 <br />New Bank 2007 $125,555 8% - 10yr $18,711 $125,555 10 2017 <br /> Totals $145,889 $2,241,336 <br /> * Adjusted due to deferrals (Previously $31.076) <br /> ** Includes 10% annual loan reserve requirement <br />