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<br />The two companies are not-for-profit corporations with 2,340 shares of stock issued to ' <br />225 shareholders including the City of Greeley. The proposed project involves only the <br />Greeley and Loveland Company. <br /> <br />The two companies have extensive water rights holdings for both direct flow diversions <br />from the Big Thompson River and for storage in several reservoirs, three of which have a <br />substantial amount of capacity. The total average annual yield of the entire system is <br />about 66,000 acre-feet per year. <br /> <br />Proposed Proiect <br />Equalizer Dam is the last reservoir on the system and is used, as the name implies, for <br />equalizing storage for direct diversions from one of the main feeder canals. The reservoir <br />has a capacity of 885 acre-feet. The dam does not have a spillway and the dam <br />embankment is experiencing slope stability problems. The existing gate structure is in poor <br />condition. <br /> <br />The project involves replacing the existing gate structure with a new structure which will <br />incorporate both the outlet gates and a spillway. In addition, the existing dam embankment <br />will be raised one foot along its total length of 1,000 feet. The spillway will be designed to <br />pass 75 percent of the Probable Maximum Precipitation flood (a Class I structure) in view <br />of new urban development below the dam. <br /> <br />ECl estimates the total cost of the project, including planning, design, and construction, at <br />$426,000. The Company is requesting a loan equivalent to 80 percent of the total cost. <br />Design and construction are expected to be completed in 1998. <br /> <br />Financial Summary <br />A review of the Company's financial statements for the years 1994 to 1996 indicates that <br />operating expenses exceeded operating income in each of those years. The financial <br />statements also show a potential liability of more than $371,000 in net deferred income <br />taxes resulting from a reevaluation of assets. The Company's accountant has indicated to <br />staff that it is unlikely that the Company would actually be required to make payment on <br />this item. There are no other significant long-term liabilities. <br /> <br />The loan request of $308,000 is based on 80 percent of the total cost of the project less <br />the previous feasibility study loan and the Small Dam Site grant. The Company is also <br />requesting a blended lending rate one-quarter of one-percent above the Agricultural <br />lending rate for 1998 to be approved by the Board in November 1997. The calculation of <br />the blended lending rate is shown in Table 1 and is based on the proportionate amounts of <br />agricultural and municipal water use in the system. - - <br /> <br />2 <br /> <br />/ <br /> <br />~ .- <br /> <br />(," <br />" <br /> <br />( <br /> <br />( <br />