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<br />Loveland Lake and Ditch Company <br />Updated March 20, 2008 <br />Page 4 of5 <br /> <br />Agenda Itern 18a <br /> <br />Financial Analysis <br /> <br />Table 1 shows a summary of the financial aspects of the loan request. As mentioned previously, <br />shareholders consist of both agricultural and municipal owners; therefore, a blended municipal / <br />agricultural interest rate of2.20% for a 20-year term will be used. Blending the Agricultural and <br />High Income Municipal rates based on share ownership, the interest rate became 2.45%. This rate <br />was then reduced by 0.25% per Policy #7 because the Company is requesting a 20-year term rather <br />than the standard 30-year term. <br /> <br />Table 1. Financial Summary <br /> <br />PROJECT/LOAN <br />Total Project Cost $135,000 <br />CWCB Loan $105,000 <br />CWCB Loan (Including 1 % Service Fee) $106,050 <br />CWCB Annual Loan Payment $6,612 <br />CWCB Loan Obligation (including 10% debt reserve funding) $7,273 <br />Number of Shares 150 <br />Annual Cost Per Share for Project $48.50 <br />Previous Assessment per Share (2007) $75.00 <br />Approved 2008 Budget Assessment per Share $125.00 <br />Annual Cost of Loan per acre-foot diverted (2900 ac-ft.) $2.50 <br /> <br />Creditworthiness: The Company's assessments will be increased by $50/share to $ 125/share to <br />cover the debt service associated with the CWCB loan. At their annual meeting in January 2008, the <br />board approved the budget with the increase in assessments to cover the CWCB loan debt service. <br /> <br />The Company has acquired a temporary bridge loan with Home State Bank in the amount of $50,000 <br />to help get the project started. This loan will be paid in full with the proceeds from the CWCB loan. <br />The Company has no other long term debt. <br /> <br />Table 2 (on the following page) shows the Financial Ratios for the Company's revenues. <br />