23c

• Board Meeting Date: 9/17/2008
• Description: CF Section - New Project Loans - WRCC, Inc. - Windsor Dam and Spillway Maintenance Project
• Board Meetings - Doc Type: Memo

WRCC, Inc. Agenda Item 23c
September 9, 2008
Page 5 of 6
Financial Analysis
Table 3 shows a summary of the financial aspects of the loan request. The Company has 965
agricultural shareholders and 35 non-agricultural/municipal share holders; therefore, a blended
interest rate of 2.55% for a 30-year loan applies.
TABLE 3
FINANCIAL SUMMARY
PROJECT/LOAN
Total Project Cost $1,413,600
CWCB Loan (90% of the Project cost) $1,273,000
CWCB Loan (Including 1% Service Fee) $1,285,730
CWCB Annual Loan Payment $61,839
CWCB Loan Obligation (including 10% debt reserve funding) $68,023
Number of Shareholders 216
Number of Shares 1000
s
t
Annual Cost Per Share for Project (1 10 years) $68
Annual Cost of Loan per AF $4.50
(based on 15,000 AF average diversion for Reservoir)
Current Assessments per share $275
Future Assessments per share $343
Creditworthiness : The Company’s current assessment is $275/share. Rates will need to be
increased to $343/share to cover the new CWCB debt se rvice. The Company has a $500,000 bridge
loan from Farmers Bank in Ault, Colorado which a llowed the Project to get started quickly. This
loan will be paid in full with proceeds from the CWCB loan.
The Company has significant cash reserves generate d during the restructuring of the Company and
sale of the Tunnel Water Company stock. The Compa ny would like to keep the cash reserves as an
asset and not use that money for operating expenses.
The original Windsor Reservoir and Canal Company did have a CWCB loan in 1996 for
rehabilitation of several struct ures along the Poudre Valley Canal. This $2,557,000 loan was paid in
full in 2007 with the proceeds from the Tunnel Wate r Company stock sale. Other than the bridge
financing, the Company has no long term debt.