CT2016-1795 Approval Letter - Laserfiche WebLink

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Orchard Ranch Ditch Company Agenda Item 18a January 25-26, 2016 Board Meeting (Updated January 27, 2016) Page 4 of 5 concluding prior to irrigation season of the same year. CWCB will be involved in this Project throughout the Design Ft Construction process. While CWCB loan funds will support only 10% of the overall Project cost, CWCB will review all Project invoicing. Financial Analysis Company shareholder uses are mixed. Ownership is 14% low-income municipal and 86% agricultural. Blending this mix of users under the current interest rates, the Company qualifies for a 1.95% interest rate for a 30-year term. In addition to the loan, the Company is in the process of applying for additional funding for a WSRA basin grant and a Colorado River District grant. the Bureau grant has been approved and is in the contracting phase. If the Company is unsuccessful in obtaining additional grant funds, it will finance the balance of the Project with a CWCB loan as presented in Table 3. If additional grant funds are received, they will either be disbursed as the Project progresses or the funds will be applied to the loan balance within 30 days of receipt. TABLE 3: FINANCIAL SUMMARY Total Project Cost $1,430,720 U.S. Bureau of Reclamation Grant (90%) $1,280,720 CWCB Loan Amount $150,000 CWCB Loan Amount (Including 1% Service Fee) $151,500 CWCB Annual Loan Payment $6,718 CWCB Annual Loan Obligation (including reserve account) $7,390 Annual Loan Obligation per share (17,280 Shares) $0.43 Current Assessment per share $0.40 Proposed Future Assessment per share with project $0.87 (1) Note (1) - An estimated annual increase of$1000 in future maintenance expenses is included in projected Company assessments Creditworthiness: The Company plans to increase assessments significantly in the 2016 water year to accommodate the anticipated CWCB debt service and increased maintenance costs of the improved system. The Company carries no existing debt.