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i s ''EPHFRA1M MO COMPANY
<br /> APPLICANT , POTENTIA1. [ IN KIND, I r: MATCHING TOTAL TOTAL
<br /> *„ WAN [WSRA GRANT. F ,NR,CS. , DIS1'RIOTt' APPLICANT COSTS PROJET
<br /> Admin $ 10,000 $ 2,000 $ 12,000
<br /> Construction $ 100,000 $ 64,000 $ 164,000
<br /> Engineering $ 15,000 $ 15,000
<br /> CWCB Loan Fee $ 1,000 $ 1,000
<br /> Feasibility Study $ 5,000 $ 5,000
<br /> Telecommunications $ 5,478 $ 5,478
<br /> TOTALS $ 101,000 $ 74,000 $ 15,000 $ 10,478 $ 2,000 $ 202,478
<br /> TOTAL PROJECT COSTS Grant&Loan=$175,000 Total Matching&In-Kind=$32,478 $ 202,478
<br /> WSRA Basin Funds $ 3,700
<br /> WSRA Statewide Funds $ 70,300
<br /> FINANCIAL PLAN
<br /> The Ephraim Ditch Company proposes to apply for a $100,000 loan from the Colorado Water
<br /> Conservation Board (CWCB) for 30 years at 1.75% interest. The remainder of the project cost,
<br /> the 1$ loan origination fee, the loan payments, and the payment into the 10% reserve will be
<br /> paid by an additional assessment of$0.10/share, with that assessment created specifically to
<br /> repay the loan, per the attached Minutes.
<br /> Revenue for operations and payment of loans is derived from assessments on 50,000 shares of
<br /> outstanding stock. Assessments are presented to stockholders and approved at the annual
<br /> stockholders meeting held in February of each year. The 2011 and 2012 assessment was$0.20
<br /> per share, with assessments maintained at $0.20 for the current year. A special meeting of the
<br /> stockholders was held on October 7, 2013, at which time the Board voted to apply for this loan.
<br /> A special joint meeting was held on October 7, 2013, consisting of the stockholders of Ephraim
<br /> Ditch Company together with those of the Sanford Canal Company, with participation from the
<br /> District as well. Both groups of stockholders unanimously gave approval for their respective
<br /> companies to apply for a CWCB Water Project Loan, each in the amount of $100,000. The
<br /> Ephraim Ditch Company and the Sanford Canal Company are thus joining up with the East Bend
<br /> Ditch — all having similar problems with their diversion systems — per terms explained in the
<br /> grant proposal approved by the Rio Grande Basin Roundtable on August 13, 2013. The East
<br /> Bend Ditch Company is bringing a significant in-kind contribution, so it is not applying for a loan.
<br /> The purpose of the Ephraim Ditch Company loan is to contribute Ephraim's share to this 3-ditch
<br /> collaboration called the "Conejos River System Confluence Management Project."
<br /> The financial condition of the company is solid at the present time. The company has no debt,
<br /> and no obligations other than those listed in financial statements found in Appendix E. For
<br /> fiscal 2012, the Company had total income of$33,280.57 and total disbursements of
<br /> $29,042.09, with a total ending balance of$28,432.89, counting a small outstanding amount.
<br /> + 16 Prepared by the Conejos Water Conservancy District, P.O. Box 550, Manassa, CO 81141 w
<br /> Per contract: Nicole V.Langley,Transforma Research&Design(www.transformagrants.com)
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