PROJC01817 ‎(2)‎

• Contract/PO #: C150189
• Contractor Name: Larimer and Weld Irrigation Company, The
• Contract Type: Loan
• Water District: 2
• County: Weld
• Loan Projects - Doc Type: Approval Letter

Larimer and Weld Irrigation Co.
September 14-15, 2004

Agenda Item 4e

Table 1 is a summary of the financial aspects of the project. A CWCS loan of $1 ,500,000 would
have an annual payment of $78,833 (including the 10% reserve requirement) at the loan terms of
2.50% for 30 years.

Table 1. Financial Summary

Proiect Cost $1,666,700
Number of Shareholders 350
Number of Shares of Stock 1419
CWCS Loan Amount (30 vears) $1,500,000
CWCS Loan Payment (includes 10% reserve) $78,833
Current Assessment per share (2004) $230
New Assessments per share (see note below) $280
Annual Loan Cost per acre-foot (aver. annual delivery: 90,000 ac-ft.) $0.87

Note: The company assessments have been rising over the past few years in anticipation of the
repairs being made to the system. A recent history of annual assessments and proposed
assessments is as follows:

Past Assessments

2003 $ 215
2004 $ 230

Proposed Assessments
2005 to 2007 $240 to $290
2008+ $280

Creditworthiness: The LWIC has the one outstanding loan with CWCS approved in 2002. The
loan balance is $1,000,000 with the first annual payment of $49,384 due in June 2005.

Table 2 shows the Financial Ratios for the LWIC and indicates, with the exception of cash reserves,
average to strong ability to repay the new $1,500,000 CWCS loan and the previous $1,000,000
CWCS loan.

Table 2. Financial Ratios

Financial Ratio Without With project
the project Future Year
(A ver. 2002-031
Operating Ratio (revenue/expense)
weak: less than 100% 113% 126%
average: 100% - 120% (aver.) ( strong)
strono: oreater than 120%
Debt Service Coverage Ratio
(revenues-expenses )/debt service N/A* 101%
weak: less than 100% (aver.)
average: 100% - 125%
strong: greater than 125%
Cash Reserves to Current Expense
weak: less than 50% 3% 11%
average: 50% - 100% (weak) (weak)
strono: oreater than 100%
Annual Operating Cost per Acre-Ft. (90,000 AF)
weak: greater than $20 $5.25 $6.92
average: $10 - $20 (strong) (strong)
strono: less than $10

*Not Applicable - no existing loans

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