PROJ01941 ‎(2)‎

• Contract/PO #: C150126
• Contractor Name: Kremmling, Town of
• Contract Type: Loan
• Water District: 50
• County: Grand
• Loan Projects - Doc Type: Feasibility Study

Colorado Water Conservation Board (CWCB); financing
Department of Local Affairs (DOLA); Financing
Grand River Ranch; Financing

The Town of Kremmling will be the lead for the financing, design, and construction of
the project and will be the entity entering into contracts and agreements with the various
entities for the services provided.

Financial Analysis

Several entities will be involved in financing the estimated total project cost of$1.6
million. The Town of Kremmling has applied for a grant from DOLA for $300,000
(recommended for approval on 10-11-02), the ranch is preliminarily committed for
$300,000, the town is applying for a $1,000,000 loan from the CWCB, and the town is
committed for approximately $75,000. The actual or estimated amounts by entity are
presented in Table 2.

Table 2. Sources of Funding

Entity Grant Loan Contribution 0/0
Participation
CWCB $1,000,000 57
DOLA $300,000 17
Grand River $300,000 17
Ranch
Town of $169,420 9
Kremmling

The Town of Kremmling though contributing only nine percent of the cost is responsible
for the repayment ofthe $1,000,000 loan.

The Town ofKremmling is requesting a 30-year loan from the CWCB at 3.5 percent
interest. The annual payment is $54,371. The repayment method will be through water
revenue. The estimated cost per tap is to increase by $7.25 per month. Operation and
maintenance cost are expected to add another $.75 per tap per month.

Credit Worthiness: The Town of Kremmling has outstanding debt totalling $541,000.
Table 3 shows existing debt.

Table 3. Outstanding Debt

Lender Amount Annual Payment Maturity Date
G.M.A.C $500,000 $45,000 2019
DOLA $41,000 $11,549 2006

9