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City of Grand Junction Agenda Item 13a <br /> March 16-17, 2016 Board Meeting (Updated March 18,2016) <br /> Page 7 of 8 <br /> CWCB Loan Program <br /> Financial Analysis <br /> The City qualifies for the current middle-income municipal interest rate of 2.90% for a 30-year term; <br /> however, because the City chose a 20-year term, the interest rate will be reduced by 0.25% to 2.65% <br /> (per Financial Policy#7). Table 3 provides a summary of the Project's financial aspects. <br /> TABLE 4: FINANCIAL SUMMARY <br /> Total Project Cost $1,153,800 <br /> Grant and Borrowers Contribution $153,800 <br /> CWCB Loan Amount $1,000,000 <br /> CWCB Loan Amount (Including 1% Service Fee) $1,010,000 <br /> CWCB Annual Loan Payment $65,710 <br /> CWCB Annual Loan Obligation (1St Ten Years) $72,281 <br /> Number of Taps 9,500 <br /> Monthly Project Cost per Tap (based on loan obligation 1st 10 Yrs) $0.63 <br /> Project Cost per Storage Capacity (699 AF) $1,651/AF <br /> Creditworthiness: In 1990, the City executed a $195,000 loan with the CWCB for the Juanita Pipeline <br /> Project. That loan paid off early in 2009.The City's water activity enterprise has two current loans with <br /> the Colorado Water Resources and Power Development Authority. Both loans are in good standing. <br /> Additionally, the City does not anticipate raising water rates in order to make the annual CWCB loan <br /> payments for this Project. <br /> TABLE 5: EXISTING DEBT <br /> Lender Project Current Annual Maturity Collateral <br /> Balance Payment Date <br /> Colorado Water Water system Water Enterprise <br /> Resources and Power improvements $1,451,930 $277,610 2022 Revenues <br /> Development Authority <br /> Colorado Water Water system Water Enterprise <br /> Resources and Power $2,961,332 $244,738 2030 <br /> Development Authority improvementsRevenues <br />