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City of Lamar Agenda Item 23b <br /> September 15-17,2015 Board Meeting(Updated September 18, 2015) <br /> Page 7 of 8 <br /> CWCB Loan Program <br /> Financial Analysis <br /> The City qualifies for the current low-income municipal interest rate of 2.45% for a 30-year term; <br /> however, because the City chose a 10-year term, the interest rate will be reduced to 1.95% (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 $400,000 <br /> Borrowers Contribution - Cash $51,675 <br /> Borrowers Contribution - In Kind Labor Et Equipment $86,700 <br /> CWCB Water Supply Reserve Grant - Basin Account $25,000 <br /> CWCB Water Supply Reserve Grant - Statewide Account $136,625 <br /> CWCB Loan Amount $100,000 <br /> CWCB Loan Amount (Including 1% Service Fee) $101,000 <br /> CWCB Annual Loan Payment $11,215 <br /> CWCB Annual Loan Obligation (including reserve account) $12,336 <br /> Annual volume of repurposed water 3.44 AF <br /> Project cost per acre-foot of repurposed water $166,279 <br /> Creditworthiness: The City's water activity enterprise has $9,834,292 in existing debt as summarized <br /> in Table 4. The City's existing CWCB Loan was for a raw water pipeline with an original loan amount of <br /> $2,900,251 with a first payment due October 2015. It should be noted that the City's Interest During <br /> Construction (IDC) payment of $4,177 was received 9 months late. An increase in water rates is not <br /> planned in anticipation of this project. <br /> TABLE 4: EXISTING DEBT <br /> Lender Project Current Annual Maturity Collateral <br /> Balance Payment Date <br /> UMB Bank Water revenue <br /> bonds $690,000 $180,000 2019 Water revenues <br /> Colorado Water Relocation of <br /> Resources & Power chlorine <br /> Development building & $5,499,634 $194,788 2030 Water Activity <br /> Authority (WI0F253, storage tank Enterprise revenues <br /> D09Z253, D09F253) improvements <br /> Honeywell <br /> Bank of America acquisition $3,027,664 $181,926 2027 Equipment <br /> lease <br /> CWCB (C150367) Water line $616,994 $28,504 2044 Water Activity <br /> Enterprise revenues <br /> $9,834,292 $585,219 <br />