PROJ02151

• Contract/PO #: C150163
• Contractor Name: New Cache La Poudre Irrigating Company
• Contract Type: Loan
• Water District: 3
• County: Weld
• Bill Number: 04-1221
• Loan Projects - Doc Type: Approval Letter

New Cache La Poudre Irrigating Company
November 19-21 2003

Agenda Item 8b

404 Permit. State Engineer approval is required on the dam and reservoir design, and all 3
reservoirs will meet State dam safety requirements.

Financial Analvsis

The total estimated cost of the project is $9,542,000, and NCLPIC water is used almost exclusively
for agricultural purposes. Staff is recommending a maximum loan amount of $7,200,000 (75% of
the estimated project cost) for 30 years at an interest rate of 2.50%. NCLPIC will fund its $932,351
share of the project through cash reserves and an increase in its assessments. In addition,
NCLPIC has a $1,409,649 private loan with Cornish Plains Livestock, LLLP for property
acquisition, discussed further below.

Table 1 is a summary of the financial aspects of the project. A CWCB Construction Fund Loan of
$7,200,000 would have an annual payment of $378,399 (including the 10% reserve requirement) at
the loan terms of 2.50% for 30 years. The CWCB loan will be repaid from increases in the base
assessment rate from $110 to $259 per share. Including both loans, the annual loan cost for the
project will be $111.39 per acre-foot, based on an average annual delivery of 4500 acre-feet.

Table 1. Financial Summary

: 4500 ac-ft.

$9,542,000
300
2500
$1,409,649
$122,843
$7,200,000
$378,399
$110
$259
$111.39

Note: A recent history of annual assessments and proposed assessments is as follows:

Past Assessments
1999 $ 56
2000 $ 56
2001 $ 60

Past and Proposed Assessments
2002 $ 65
2003 $110
Future $259

Creditworthiness: The NCLPIC has one outstanding CWCB loan for its diversion structure. The
original amount (1993) was for $450,000, with a remaining amount of $335,649 and an annual
payment of $28,805 through 2019. In addition, NCLPIC has two loans for property acquisition for
this project. One loan has an outstanding amount of $702,596 with the Colorado Community Bank
of Greeley (term ending 2006) that will be paid off with the CWCB loan, if approved. The second
loan is for $1,409,649 with the Cornish Plains Livestock, LLLP, with a 20-year amortization and an
annual payment of $122,843, and a 10-year balloon payment of approximately $900,000 due in
2013. The NCLPIC intends to refinance the remainder at that time. The project land,
approximately 1300 acres, is pledged as collateral for this loan.

Table 2 shows the Financial Ratios for the NCLPIC, and indicates average ability to repay the
$7,200,000 CWCB loan with the increased assessments.

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