C150298 Approval Letter - Laserfiche WebLink

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Fort Morgan Reservoir and Irrigation Company September 9, 2009 (UPDATED September 16, 2009) Page 5 of 6 Financial Analysis Agenda Item 7a The Company shares are held by a mix of 91% agricultural, 7% low-income municipal, and 2% commercial owners. Blending these under the current interest rates, the Company qualifies for a 2.90% loan for a 30-year term. The Company has been approved for a$250,000 grant from the South Platte Basin Roundtable for this Project and has applied for an additional $850,000 in statewide funds from the Water Supply Reserve Account. If the Company is awarded statewide grant funds at the September 2009 CWCB Board Meeting, the loan contract will be reduced by such amount. TABLE 2 FINANCIAL SUMMARY Total Pro'ect Cost $2,388,500 WSRA South Platte Basin Grant Funds (a roved by Basin) $250,000 ~~ WSRA Statewide Grant amount a roved b the CWCB 9/15/09 * $420,000 ~~ CWCB Loan Amount CWCB Loan Amount (Includin 1% Service Fee) ~ CWCB Loan Payment ~ CWCB Loan Pa ent (Includin 10% Reserve) ~ Current Assessment per share $109 Q,~, Future Assessment er share "'"-" ~ Cost of Loan (with Reserve Account) per share (2,844 Shares) *Note: The CWCB approved a grant to the Company in the amount of $420,000 from the Water Supply Reserve Account statewide funds. As noted in the revised Staff Recommendation of this memo, the loan amount was amended to $1,494,800 (including the 1 % service fee). Credihvorthiness: The Company has the following two loans with Bank of the West in Fort Morgan: TABLE 3 EXISTING DEBT Loan Purpose Maturity Date Remaining Amount Annual Payment Chevy Pickup 2010 $13,105 $12,097 30-acre parcel of land 2015 ~104,000 $17,400 Neither of these existing loans have liens associated with the Company revenues.