PROJ01945 ‎(3)‎

• Contract/PO #: C150193
• Contractor Name: Dolores Water Conservancy District
• Contract Type: Loan
• Water District: 34
• County: Montezuma
• Loan Projects - Doc Type: Feasibility Study

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XI.10 ECONOMIC AND FINANCIAL PROGRAM
WETP ACK is based on expanding the benefits of the Dolores Project. The facilities in the
Selected Plan for Contract #2 described above, includes the development of facilities to irrigate
about 2,200 acres of new land to bring the WETPACK total new acreage to about 3,000 acres.
The DISTRICT is requesting a loan of $3,323,180 which is 90% of the construction cost of
$3,692,000. The DISTRICT is also requesting loan terms of 2.5% for 30 years with annual debt
service of$158,774.

XI.10.1 FINANCIAL ANALYSIS
The DISTRICT has purchased an annuity that will yield $296,333 per year for 30 years
beginning in 2008. The annual payment to CWCB for Contract #1 is $137,559 per year based on
a loan of $2,530,000 for 30 years at 3.5%.

The annual payment to CWCB for Contract #2 is $158,774 per year based on a loan of
$3,323,180 for 30 years at 2.5%. The combined annual payment for Contracts #1 and #2 is
$296,333, equal to the annual annuity payment of$296,333. Under the Annuity Agreement with
MBIA all proceeds from the annuity are to be paid directly to the CWCB.

The cash flow for Contracts #1 and #2 including IDC and loan payments prior to the ammity are
shown in Table XI-D. The DISTRICT has reserves sufficient to make these initial payments.

Table XI-D also shows the cash flow analysis during construction and the debt service for
Contracts #1 and #2 for the life of the CWCB loan. The columns in Table XI-D are explained
below.

Column 1 is the year.

Column 2 is the annual debt service payment for Contract #1 based on a loan of
$2,530,000 at 3.5% for 30 years.

Column 3 is the annual debt service payment for Contract #2 based on a loan of
$3,323,180 at 2.5% for 30 years.

Column 4 is the sum of Columns 2 and 3.

Column 5 is interest during construction (IDC), loan origination fee of 1 % of loan
amount, the estimated engineering cost for the feasibility study of $10,000, and legal
expenses of $6,000.

Column 6 is the total of columns 4 and 5.

Column 7 is the amount of revenue from the annuity.

Column 8 is the funds paid by the DISTRICT.

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