Board Meeting July 2014 Agenda Item 23a

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Upper Platte& Beaver Canal Company Agenda Item 23a July 2, 2014 Page 2 of 6 Financial Analysis The Company shares are held by a mix of 89.2% agricultural, 6% commercial, and 4.8% low-income municipal owners. Blending these under the current interest rates, the company qualifies for a 2.25% interest rate for 30 years. The company applied for a 10-year term, so the interest rate will accordingly be reduced to 1.75% per CWCB Financial Policy#7. TABLE 2: FINANCIAL SUMMARY Total Project Cost $ 210,000 Borrower Match $ 21,000 CWCB Loan $ 189,000 CWCB Loan (Including 1% Service Fee) $ 190,890 CWCB Annual Loan Payment $ 20,974 CWCB Annual Loan Obligation (including 10% debt reserve funding) $ 23,072 Current Annual Assessment per Share $ 260 Cost of Loan (with Reserve Account) per share (1,187 Shares) $ 19.44 Creditworthiness: The Company plans to increase assessments by $16.95 annually in order to cover this Project debt service. The Company's assessments to its members have been increased and decreased annually for the past four years in response to its debt service needs. The Company has a credit history with the CWCB, always making its payments on time. Prior loans include an $83,000 loan for a diversion structure rehabilitation paid off in September of 2012, and a $68,175 loan for the Badger Creek Well Augmentation project, paid off in November of 2013. TABLE 3: EXISTING DEBT Maturity Original Remaining Annual Collateral Loan Date Balance Balance Payment Bank of Colorado 2/27/2019 $60,000 $49,916 $10,544 Backhoe (Brush, Colorado) 0/2012 C150096 (CWCB) (paid off $83,000 $0 $9,361 Sept2012) 12/2014 C150144 (CWCB) (paid off $67,500 $0 $7,689 Nov 2013)