C150303 Approval Letter - Laserfiche WebLink

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Trinchera Irrigation Company January 19, 20]0 (UPDATED February 4, 2010) Page 4 of 5 TABLE 2 Agenda Item 26b Creditworthiness: Based upon the original estimated construction costs, the Company stockholders thought they could fund the Project through the sale of their own stock that it had acquired over the years from delinquent stockholders. The Company sold 864 shares of Company held stock for $172,800. Due to the increased actual cost of the project, the Company needs additional funds to pay for the construction and engineering fees. A stockholder provided a$200,000 short term loan to the Company to cover the reconstruction costs until long-term funding could be obtained. This loan will be repaid with proceeds from the CWCB loan. The Company had two previous loans from the CWCB. The first was for the Trinchera Watershed Project for concrete lining of canals and ditches. The $251,6901oan was approved in 1978 and had annual payments of $11,000. This loan was paid in full in Apri12009. The second loan was for the Mountain Home Reservoir Dam Project. This $1,000,000 loan was approved in 1993 and has a balance of $410,135, with $18,623 due annually. The maturity date of the loan is September 2034. This loan was secured by a pledge of assessment revenues and the Mountain Home Reservoir. In September 2009, the Company was approved for a$200,000 Water Supply Reserve Account grant ($150,000 from the state wide funds and $50,000 from the Rio Grande basin funds) for the Sangre de Cristo Trinchera Diversion Canal Restoration Project. In addition, the Company has applied for an additional $54,000 grant from the Rio Grande Basin for a project titled "Shortfall Request Sangre de Cristo Trinchera Diversion Canal Restoration." This request was approved by the basin and will be before the CWCB as part of the January 2010 grant requests. FINANCIAL SUMMARY