C150303 Feasibility Study - Laserfiche WebLink

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Trinchera Irrigation Company is applying for a loan from the CWCB in the amount of $600,000.00 to accommodate 90% of the estimated $667,000.00 cost of the project. TIC will cover any additional cost of the proj ect through a previous sale of company stock and future assessments. The Trinchera Irrigation company is requesting a 30-year loan from the CWCB. The current ownership of TIC is 100% agricultural resulting in a lending rate of 2.75%. At this rate the annual payments are projected to be $29,630.65 according to the Water Project Loan Program Calculator. To fund the emergency reserve account $2,963.00 would be added to a savings account each year for the first 10 years. The total annual cost would be $32,593.65. This payment would increase the assessment per share by $2.63 for the first ten years. A previous loan from CWCB received in 1978 which provided funding for concrete lining of canals and ditches known as the Trinchera Watershed Project was paid in full Apri12009. The loan was for $251,689.18. The annual payment on that loan in the amount of $11,237.98 is included in TIC's current budget and shareholder assessments. The $19,386.34 difference between the old payment and the payment on the new CWCB loan would result in an increased assessment of $1.56 per share annually for the first ten years. Credit Worthiness Trinchera Irrigation Company assesses shareholder fee's annually. The assessments are voted on and set by shareholders at the annual meeting held the second Tuesday of March each year based on the projected operating costs and debt service. If expenses exceed the projected budget amount the TIC draws funds from a$75,000.00 line of credit from the Alamosa State Bank in Alamosa, CO. The loan amount is included in the next years projected expenses and repaid when the first assessments are received. TIC has one outstanding loan with the CWCB dated September 1, 1993. The remaining amount is $410,135.61, the annual payment is $18,622.92, and the maturity date is September 1, 2034. This loan was for rehabilitation of the Mountain Home Reservoir Dam. TIC has made all scheduled payments on this loan. There are no other outstanding loans at this time. Complete financial information may be found in TIC's Annual reports in Appendix I. Collateral As security for the CWCB loan Trinchera Irrigation Company can pledge assessment income and the project itself.