18a ‎(3)‎

• Board Meeting Date: 3/18/2008
• Description: CF Section - New Project Loans - Loveland Lake and Ditch Company - Loveland Reservoir Inlet Improvements
• Board Meetings - Doc Type: Memo

Loveland Lake and Ditch Company
March 11, 2D08
Page 4 of 5
Financial Analysis
Agenda Item 18a
Table 1 shows a summary of the financial aspects of the loan request. As mentioned previously,
shareholders consist of both agricultural and municipal owners; therefore, a blended municipal /
agricultural interest rate of 2.20% fora 20-year term will be used. Blending the Agricultural and
High Income Municipal rates based on share ownership, the interest rate became 2.45%. This rate
was then reduced by 0.25% per Policy #7 because the Company is requesting a 20-year term rather
than the standard 30-year term.
Table 1. Financial Summary
PROJECT/LOAN
Total Project Cost $135,000
CWCB Loan $105,000
CWCB Loan (Includin 1% Service Fee) $106,050
CWCB Annual Loan Payment $6,612
CWCB Loan Obli ation (includin 10% debt reserve fundin) $7,273
Number of Shares 150
Annual Cost Per Share for Project $48.50
Previous Assessment er Share (2007) $75.00
A roved 2008 Bud et Assessment er Share $125.00
Annual Cost of Loan per acre-foot diverted (2900 ac-ft.) $2.50
Creditworthiness: The Company's assessments will be increased by $50/share to $125/share to
cover the debt service associated with the CWCB loan. At their annual meeting in Januar}' 2008, the
board approved the budget with the increase in assessments to cover the CWCB loan debt service.
The Company has acquired a temporary bridge loan with Home State Bank in the amount of $50,000
to help get the project started. This loan will be paid in full with the proceeds from the CWCB loan.
The Company has no other long term debt.
Table 2 (on the following page) shows the Financial Ratios for the Company's revenues.