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Consolidated Home Supply Ditch and Reservoir Company <br />October 18, 2013 (Undated October 21, 2013) <br />Page 4 of 5 <br />TABLE 3: PROJECT COST SUMMARY <br />Task <br />Cost <br />Engineering <br />$174,600 <br />Phase One Construction <br />$561,600 <br />Phase Two Construction <br />$543,800 <br />Subtotal <br />$1,280,000 <br />Contingency (25 %) <br />$320,000 <br />Total <br />$1,600,000 <br />Agenda Item 8h <br />Schedule: Construction is expected to commence by December 2013 or sooner. Phase One is <br />expected to be complete by February 2014. Phase Two will commence and be completed in the fall <br />of 2014. <br />Financial Analysis <br />Table 4 provides a summary of the Project's financial aspects. The first three years of the loan will <br />be assessed a 0% interest rate. The remaining term of the loan will be assessed a blended interest <br />rate of 1.95% with the principal amortized over 27 years (Ownership: 76% Agriculture, 23% Mid <br />Municipal, <1% High Municipal, <1% Commercial). Staff is recommending an exemption to <br />Financial Policy #11 to allow for 100% funding of eligible Project cost. <br />TABLE 4: FINANCIAL SUMMARY <br />Total Project Cost <br />$1,600,000 <br />CWCB Loan Amount (100% of total Project cost) <br />$1,600,000 <br />CWCB Loan Amount (Including 1% Service Fee) <br />$1,616,000 <br />CWCB Annual Loan Payment <br />$77,553 <br />CWCB Loan Obligation (Includin 10% Reserve) <br />$85,308 <br />Number of Shares <br />2001 <br />Annual Cost Per Share for Loan <br />$43 <br />Current Assessment per Share <br />$163 <br />Future Assessment per Share <br />1 $210 <br />Creditworthiness: The Company has $525,608 in existing debt as summarized in Table 5. These <br />loans are in good standing. <br />TABLE 5: EXISTING DEBT <br />Lender <br />Original <br />Balance <br />Current <br />Balance <br />Annual <br />Payment <br />Maturity <br />Date <br />Collateral <br />USDA Rural Development <br />$650,000 <br />$99,018 <br />$27,157 <br />12/10/2015 <br />Assessments <br />CWCB <br />$533,000 <br />$426,591 <br />$29,024 <br />3/1/2034 <br />Mariano Reservoir and <br />Dam; Assessments <br />