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� � � Supply Irrigating Ditch Co. Agenda Item 11 b. January 24-25,2001. 5. Placement of riprap on the upstream face of both dams. 6. Raising the dam crest on both dams to gage height 30 feet. 7. Removal of the two abandoned outlets and backfill with compacted clay. 8. Repair of the existing outlet to good working condition. The implementation schedule calis for completion of financing arrangements in winter 2000/2001, with formal approval and resolution by the SIDC sharehoiders in summer 2001. Smith Geotech will finalize engineering design in spring 2001. Construction will begin in fail 2001 and will take about 6 months to complete. Financial Analysis The total estimated cost of the project is $1,900,000. Staff is recommending that the CWCB Board approve a Construction Fund loan of $1,700,000 (90%) percent of the estimated cost. Alternative financing sources: The Company actively sought alternative financing. They were not able to obtain a grant from the NRCS to cover project planning or construction costs. The SIDC also requested a loan from their bank (The First National Bank of Longmont) but were turned down because (the bank does not provide long-term fixed rate financing for agricultural projects. There are 400 shares within the SIDC, of which agricultural interests own 387.5 shares, and municipal (average income) interests own 12.5 shares. The weighted interest rate between the 3.5% agricultural rate and the 5.5% municipal average rate is 3.56%. In accordance with CWCB procedure, the rate is rounded down to 3.5%, which is the recommended interest rate for this loan. Table 1 is a summary of the financial aspects of the project. Annual assessments will increase from $100 per share, up to $354 per share with a CWCB loan payment of $101,674. This represents an annual assessment increase of $254, or $10.13 per acre-foot, based on average annual diversions 10,040 acre-feet (including 542 acre-feet of new storage.) Table 1. Financial Summa Project Cost Total CWCB Loans (90% of Project Cost) CWCB Loan Payment Amount, includinq 10% loan reserve Number of Shareholders Number of Shares of Stock Current Assessment per Share Future Assessment per Share Annual Project Cost per acre-foot (Averaae annual diversions: 10,040 acre-feet with the pro 1,900,000 1,700,000 $101,674 160 400 $100 $354 $10.13 Credit worthiness: SIDC has one existing debt in amount if $31,600 to the First National Bank of Longmont, upon which all payments have been made as agreed. A condition of the CWCB loan will be that the bank subordinates its debt position. Table 2 shows the Financial Ratios and indicates average ability to repay with the project in place.