PROJC00440 ‎(2)‎

• Contract/PO #: C150034
• Contractor Name: Owl Creek Supply and Irrigation Company
• Contract Type: Loan
• Water District: 1
• County: Weld
• Bill Number: HB 00-1419
• Loan Projects - Doc Type: Approval Letter

Owl Creek Supply and irrigation Co. Agenda Item 10d.
January 14, ZOOO. (Updated February 4, ZOOO)

Table 1: Alternative of Commercial Bank Financing

Lender and Loan Rate Annual Payment Added Annual Cost
CWCS at 4% I 30 years $26,023 $0
Bank at 8.5% / 20 years $47,552 $21,529
Bank at 10% I 20 years $52,856 $26,833
Bank at 12% I 20 years $60,245 $34,222

Credit worthiness: The Company has no debt. The financial ratios for the OCSIC are shown in
Table 2, and indicate average to strong ability to repay the CWCS loan.

Table 2, Financial Ratios

Financial Ratio Without the project With the project
Operating Ratio (revenue/expense) 126% (strong) 101% (average)
Debit Service Coverage Ratio No debt (strong) 114% (average)
(revenues-expenses)/debt service
Cash Reserves to Current Expense 79% (average) 50% (average)
Annual Cost per Acre-Foot $2.49 (strong) $3.49 (strong)

Table 3 is a summary of the financial aspects of the project. Annual assessments will increase
from $50 per share, to $70.00 per share with a Construction Fund loan of $450,000. (Annual
assessment increase of $20.00.)

Table 3. Financial Summary

Project Cost $500,000
Loan Amount (90% of Project Cost) $450,000
CWCS Loan Payment Amount, including 10% loan reserve $28,626
Number of Shareholders 145
Number of Shares of Stock 996.5
Current Assessment per Share $50.00
Future Assessment per Share $70,00
Annual Project Cost per Acre-Foot $0.95
(Based on total annual diversions: 30,000 acre-feet)

Water is used by the shareholders for agricultural purposes. The OCSIC would qualify for the
CWCB Agricultural Lending rate.

As security for the loan the oeslc will pledge revenues from assessments, and additional
collateral in accordance with CWCS Loan Policy # 5.

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