Central Colorado Approval Letter

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Central Colorado Water Conservancy District Agenda Item 29e May 9,2014(Updated May 23,2014) Page 6 of 7 Financial Analysis The District qualifies for an agricultural interest rate of 1.75% for a 30-year term. Table 3 shows a summary of the financial aspects of the Project. TABLE 3: PROJECT FINANCIAL SUMMARY 20.75% of Reallocation Cost $30,190,000 CWCB/WMDC Share Discount $2,020,000 Total Project Cost(19.36% of Reallocation Cost) $28,170,000 Project Loan $28,170,000 Project Loan(Including 1% Service Fee) $28,451,700 Project Annual Loan Payment $1,227,115 Project Annual Loan Obligation(incl. 10%debt reserve) $1,349,826 Project Cost per Acre-Foot of Storage (4,274 AF) $6,591/AF Contracting: In anticipation of a multi-year and multi-phased Project, CWCB may enter into multiple contracts, under the approved loan limit. This will put the District into repayment on completed portions of the Project and allow CWCB to best utilize its loan funds. CWCB will enter into all contracts no sooner than September 1, 2014. In recognition of the long time of performance for Contracts 2 and 3, interest accrued prior to Project completion shall be paid annually unless otherwise approved by CWCB. CWCB will disburse loan funds at a rate of up to 100% of Project Cost, up to the approved loan limit. The breakdown of the contract components are listed in Table 4. TABLE 4: CONTRACTING SUMMARY Time of Estimated Contract performance Project Cost Contract Amount Project Activity (Not Incl.Service Fee) 1 1 Year $3,156,000 $3,156,000 Cost of storage Engineering,recreation facilities construction, 2 5 Years $18,083,000 $18,083,000 on-site mitigation,off-site mitigation, mitigation monitoring 3 13 Years $6,931,000 $6,931,000 Off-site mitigation,mitigation monitoring Creditworthiness: Together,the District, GMS, and WAS have $62.6 million in existing debt consisting of four loans and one bond(See Table 5). The proposed Project loan will be contracted with the District, which is a separate legal entity than GMS and WAS. Revenues to pay back the loan are guaranteed through a voter approved tax levy of 3 mills, not to exceed $3.9 million per year. This tax levy is only authorized to pay the debt service of the 2013 Bond and this Project loan.