C153835A Approval Letter - Laserfiche WebLink

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. . e .. Table 1. Calculation of Weighted Lending Rate ..Ag~~~~.!.~E~~..~.~~~~..Y~.~~.~........................... .............~.~.??.:9..?............,j.....................~:.9.9..................... ............?}.~............l Cit ofGreele - A ricultural Use 485.75 1 4.00 .83 1 ...~.!~y...2r~~~.~~x..:..M~.~~~p..~.Y~~........... .............~.??.:.~~.............L...................?..:9.9...................... .............~:.9.~...........j Totals 2340,0 ~ N/A 4.21 ~ A Construction Fund loan of $308,000 at an assumed lending rate of 4.25 percent would result in annual payments of about $18,360. The feasibility study included revenue and expenditure projection for the entire period of debt retirement indicating that assessments could be increased to pay all operating expenses plus CWCB debt service. The projection also indicates that the assessment would have to be increased by about $11 per share from the current level of$135 per share. The capital cost per acre-foot of Equalizer Reservoir capacity would be about $480. Some of the financial aspects of the project are summarized in Table 2. Table 2. Financial Summary $426,000 $308,000 2,340 225 $135 $150 885 $480 As security for the loan the Company will be asked to pledge revenues from assessments as well as water rights and/or real estate equivalent in value to the full amount of the loan. Discussion The project is important in allowing the Company to continue to operate the Equalizer Reservoir and to prevent loss oflife or property below the dam. Staff is, however, concerned with the inadequacy of revenues indicated by the financial statements for 1994 to 1996 and some of the Company's existing liabilities and will therefore recommend that the loan be fully collateralized. Recommendation Staff recommends that the Board favorably consider a loan not to exceed $308,000 to the Greeley and Loveland Irrigation Company for the purpose of making the proposed improvements to the Equalizer Dam, outlet works, and spillway. The recommended term of the loan is 30 years and the lending rate would be that rate approved by the Board for Agricultural borrowers in 1998 plus one-quarter of one-percent. 3 "-'"