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Larimer and Weld Irrigation Company Agenda Item 16a <br /> September 21-22, 2016 Board Meeting(Updated September 22, 2016) <br /> Page 4 of 5 <br /> TABLE 2: PROJECT COST <br /> Task Cost <br /> Construction $272,000 <br /> Gate, Operators, and Control Equipment $412,000 <br /> Engineering $50,000 <br /> Contingency $16,000 <br /> TOTAL $750,000 <br /> Permitting: The Corps of Engineers has approved this Project as being exempt under the Clean Water <br /> Act, per Section 404(f)(1). No other permits are required and all work will be confined to Company <br /> owned land or ditch easement. <br /> Schedule: Final design is expected to occur by October 2016. Construction is planned to occur from <br /> November 2016 through March 2017, prior to the 2017 irrigation season. <br /> Financial Analysis <br /> The Company qualifies for a blended interest rate of 1.50% for a 30-year term (Ownership: 96% <br /> Agricultural, 4% Mid Municipal, <1% High Municipal). Due to the small percentage of non-agricultural <br /> ownership, this blended rate is the same as the agricultural rate after it has been rounded down to the <br /> nearest 0.05% per CWCB Financial Policy#7. Table 3 provides a summary of the Project's financial <br /> aspects. The Company will pay for its contribution using available cash on hand. <br /> TABLE 3: FINANCIAL SUMMARY <br /> Total Project Cost $750,000 <br /> Borrowers Contribution (10%) $75,000 <br /> CWCB Loan Amount (90%) $675,000 <br /> CWCB Loan Amount (Including 1% Service Fee) $681,750 <br /> CWCB Annual Loan Payment $28,388 <br /> CWCB Annual Loan Obligation (1st Ten Years) $31,226 <br /> Number of Shares 1,419 <br /> Annual Loan Obligation per Share $22 <br /> Current Assessment per Share $350 <br /> Future Assessment per Share 1 $350 <br /> Total Cost of Project per AF (85,000 AF) $8.82 <br /> 'Financial Analysis shows an increase of current assessments may not be necessary <br /> Creditworthiness: The Company has $1,991,820 in existing debt made up of two CWCB loans as shown <br /> in Table 4. Both loans are in good standing. <br /> TABLE 4: EXISTING DEBT <br /> Lender Original Current Annual Maturity Collateral <br /> Balance Balance Payment Date <br /> CWCB $1,000,000 $693,790 $49,384 2034 Pledge of Assessments and Project <br /> (Contract C150109) Itself (Check Structures) <br /> CWCB Pledge of Assessments and Project <br /> (Contract C150189' $1,620,492 $1,298,030 $77,423 2038 Itself (Big Windsor Res Inlet <br /> Structure >_C Lake Lee Dam Structure) <br />