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Entity Loan Grant Match Total
<br /> CWCB $650,000 $650,000 (850,000)
<br /> CWCB $ 50,000 $ 50,000
<br /> DOLA $200,000 $200,000
<br /> City of Cortez $300,000 $300,000
<br /> Total $650,000 $250,000 $300,000 $1,200,000
<br /> The City of Cortez is requesting a 10 year loan from CWCB. The lending rate would be 2.25%
<br /> resulting in annual payments of approximately$73,312 on$650,000. If,the City of Cortez did
<br /> not receive a grant from DOLA then the City would request a 10 year loan from CWCB for
<br /> $850,000 which would result in annual payments of approximately$95,870 a year.
<br /> The City of Cortez Water Fund currently has annual revenues of$2,311,280 and annual debt
<br /> repayment obligations of$369,649. Current annual operating expenses are $1,274,014, Capital
<br /> Items plus Depreciation and Inventory account for$451,332 providing a total expenditure of
<br /> $2,094,995 for all expenditures. This would leave a balance of$216,285 unencumbered and
<br /> available to repay the loan from CWCB. (Debt repayment is about 20%of the overall budget.)
<br /> Current Loans
<br /> Lender Balance Payment Amount Payable
<br /> CWCB $ 472,180 $ 72,506 Annually
<br /> Dolores Water Conservancy Dist. $3,225,076 $246,125 Annually
<br /> CO. Dept. of Local Affairs $ 210,696 $ 23,772 Annually
<br /> CO Water Resources &Power
<br /> Development Authority $391,027 $ 13,623 Semi-Annually
<br /> All other funding for this project is in the form of grants. As stated previously,with the
<br /> implementation of this project, it would work out to an estimated savings of approximately
<br /> $69,000 in manpower and increased revenues of$100,000 totaling $169,000 annually of
<br /> additional revenue which would more than cover the cost of the loan payment and providing an
<br /> additional buffer for loan repayment.
<br /> Alternative Financial Considerations:
<br /> The City of Cortez has investigated alternative financing sources. Application has been made to
<br /> DOLA for a Tier II Grant for$200,000 and to CWCB for a$50,000 grant. The City is also
<br /> contributing to the project with a cash match of$300,000. Grants would account for
<br /> approximately 50%of the project cost of$1,200,000.
<br /> Collateral:
<br /> As security for the CWCB Loan the City pledges future revenues from the Water Fund.
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