C150137 Feasibility Study

• Contract/PO #: C150137
• Contractor Name: Lake Meredith Reservoir Company, The
• Contract Type: Loan
• Water District: 17
• County: Crowley
• Loan Projects - Doc Type: Feasibility Study

FINANCIAL ANALYSIS
Three entities will be involved in financing the project by either grants or loans,
with a total estimated cost of $1.5 million. The estimated amounts from each source are
provided on Table II.
TABLE II
SOURCES OF FUNDING
Costs for fish screens at the new outlet structure, if they are installed, would be financed
and funded by the Colorado Division of Wildlife at no expense to the Company. The
Company will cover any costs that exceed the estimated project cost by special
assessments of the Shareholders, although no such assessments are expected.
The Company is requesting a 30 -year loan from the CWCB. The standard
agricultural lending rate would be 4.0 %, resulting in annual payments of $63,613. To
this cost would be added the loan payment to the First National Bank of Ordway for the
$500,000 loan. The annual payment for that loan is expected to be about $67,934. The
total of annual payments for the two loans will be $131,547. The Company has applied
for $5,000 in grant funds from the CWCB for the Feasibility Study that was completed in
December 2002. Any other ancillary expenses will be paid from contingency accounts of
the Company's operating budget. The Following Table III shows a summary of the
project financing.
TABLE III
FINANCIAL SUMMARY
Item
Amount
Total Project Cost
$ 1,524,860
Percent
Entity
Grant
Loan
Assessment
Participation
Lake Meredith Shareholders
$9.860
.7%
Engineering Feasibilit
First National Bank of Ordway
--
$500,000
--
32.8%
CWCB Feasibility Grant
$5,000
--
0.3%
CWCB Construction Loan and
--
$1,000,000
$10,000
66.2%
Loan Origination
Total
$5,000
$1,500,000
$19,860
100%
Costs for fish screens at the new outlet structure, if they are installed, would be financed
and funded by the Colorado Division of Wildlife at no expense to the Company. The
Company will cover any costs that exceed the estimated project cost by special
assessments of the Shareholders, although no such assessments are expected.
The Company is requesting a 30 -year loan from the CWCB. The standard
agricultural lending rate would be 4.0 %, resulting in annual payments of $63,613. To
this cost would be added the loan payment to the First National Bank of Ordway for the
$500,000 loan. The annual payment for that loan is expected to be about $67,934. The
total of annual payments for the two loans will be $131,547. The Company has applied
for $5,000 in grant funds from the CWCB for the Feasibility Study that was completed in
December 2002. Any other ancillary expenses will be paid from contingency accounts of
the Company's operating budget. The Following Table III shows a summary of the
project financing.
TABLE III
FINANCIAL SUMMARY
Item
Amount
Total Project Cost
$ 1,524,860
Lake Meredith Res. Co. 3/7/03
Feasibility of Outlet Channel Page 7