C150109 Feasibility Study

• Contract/PO #: C150109
• Contractor Name: Larimer and Weld Irrigation Company, The
• Contract Type: Loan
• Water District: 2
• County: Weld
• Bill Number: MC3
• Loan Projects - Doc Type: Feasibility Study

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OPINION OF FEASIBILITY

There do not appear to be significant roadblocks which would keep the Larimer & Weld Irrigation
Company from successfully completing this project. The project does raise the assessment level
assessments approximately $42 per share of stock as indicated below. The benefit is the Company
can more successfully manage the water throughout the system and ensure equitable water
deliveries to all shareholders.

Following is a cost to benefit analysis of the project.

Total Proiect Cost including interest

$49,611 x 30 years = $1,488,330
$35,107 x 5 years = $ 175,535
$ 143.306
Total $1,807,171

CWCB Loan Payments
Five Year Bank Loan Payment
1h Company Obligation

Total Cost per Share of Stock

$1,807,171 + 1,419 :::: $1,273

Cost Per Share of Stock Per Year

$1,273 + 30 years:::: $43

Cost Per Acre-foot Of Water Delivered For An Average Year

$1,807,171 + (90,000 A-Ft x 30 yrs) = $0.67

Using a rental rate of $20 per acre-foot for the water as the benefit and the total cost of the project
per year as the cost, the benefit to cost for the project is:

Benefit/Cost = [$20 x 90,000 A-Ft + ($1,807,171+30)] :::: 30

COLLATERAL

The Larimer & Weld Irrigation Company can offer the following collateral for the CWCB loan.

1. The revenue from assessments as allowed by the Company By-Laws and
Articles of Incorporation.
2. A certificate of deposit account in the amount of one annual payment to be held
by the State Treasurer.
3. The project itself, and other Company facilities.

Larimer & Weld Feasibility Study

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