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City of Cortez Agenda Item 18a <br /> January 26-27,2015 Board Meeting(Updated January 28,2015) <br /> Page 5 of 6 <br /> CWCB Loan Program <br /> Financial Analysis <br /> The City qualifies for the current low-income municipal interest rate of 2.6%for a 30-year term; <br /> however, because the City chose a 10-year term, the interest rate will be reduced to 2.1% (per <br /> Financial Policy#7). Table 3 provides a summary of the Project's financial aspects. <br /> TABLE 3: FINANCIAL SUMMARY <br /> Total Project Cost $1,200,000 <br /> Borrowers Contribution (depending on DOLA grant) $100,000 to$300,000 <br /> CWCB Loan Amount $850,000 <br /> CWCB Loan Amount (Including 1%Service Fee) $858,500 <br /> CWCB Annual Loan Payment $96,075 <br /> CWCB Annual Loan Obligation (1st Ten Years) $105,682 <br /> Monthly cost of loan (with Reserve Account) per tap (3,400) $2.59 <br /> Creditworthiness: The City's water activity enterprise has $4,250,083 in existing debt as summarized <br /> in Table 4. The CWCB Loan (C153465)was for a raw water pipeline with an original loan amount of <br /> $2,900,251 and is in good standing. <br /> TABLE 4: EXISTING DEBT <br /> Lender Project Current Annual Maturity Collateral <br /> Balance Payment Date <br /> DOLA(1) Water system $210,696 $23,772 2015 Water Enterprise <br /> improvements Revenues <br /> Dolores Water acre- $3,225,076 $246,125 2024 Water Enterprise <br /> Conservancy (1)District feet of water Revenues <br /> Colorado Water Water <br /> Resources and Power treatment $391,027 $27,246 2038 Water Enterprise <br /> Development facility Revenues <br /> Authority(1) <br /> CWCB Raw Water $423,284 $72,506 2022 Pipeline a easements <br /> Pipeline <br /> (1) Parity is required on existing debt in order to execute a loan contract with the CWCB. <br />