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<br />Pro' ect Cost <br />Number of ShlU'eholders <br />Number of ShlU'es of Stock <br />CWCB Loan Amount <br />CWCB Loan Pa ent includes 10% reserve <br />Annual Loan Cost er acre-foot 1,200 acre-fe<et <br /> <br /> <br />$1,250,000 <br />2 <br />30,010 <br />$1,125,000 <br />$65,194 <br />$56 <br /> <br />e <br /> <br /> <br />Owl Creek Reservoir Company <br />November 20, 2001 <br /> <br />Agenda Item 22E <br /> <br />Financial Analvsis <br /> <br />The total estimated cost for the improvements descril?ed above lU'e estimated at <br />$1,250,000. The intent of the project is to provide agricultural water storage to allow <br />1,200 acres of various croplands to be irrigated. Staffis recommending a 30-year loan at <br />the 3.25% agricultural interest rate in the maximum amount of$1,125,000 (90% of the <br />total project cost), <br /> <br />e <br /> <br />The Owl Creek Reservoir Company actively putsued alternative financing, but was <br />unable to find competitive funding elsewhere. The Reservoir Company investigated <br />obtaining a loan from their local bank, but was unsu~cessful because the bank <ioes not <br />provide long-term fixed rate financing for agriculturll1 projects. <br /> <br />Table 2 is a summary of financial aspects of the project A CWCB Construction Fund <br />loan of$1,125,000 would have an annual payment of $67,284, which includes the <br />required 10% reserve payment, at a loan term of 3,25% for 30-years, This represents a <br />cost of $56 per acre-foot, based on annual resetvoi~ storage of 1,200 acre-feet. <br /> <br />Table 2. Financial Summary <br /> <br />Credit Summ!u:y <br /> <br />The Owl Creek Reservoir Company currently has \t no existing debt. J. Gale Moody and <br />Valerie A. Moody, however, currently own all int'1'rests in the Reservoir Company. <br />Given the fact that all stock in non-assessable and currently owned by the Moody's, and <br />no annual income is generated from the corpotation itself, the credit worthiness of J. and <br />Valerie Moody have been evaluated to ensure repayment of the loan. <br /> <br />Currently, the Moody's have a number of outstanding loans for personal property, real <br />estate, and mineral interests. The outstanding balances for these loans are $4,239,723 of <br />which $3,140,450 of the debt is specifically for a~cu1tural operations. Allloan <br />payments are current . The loan contract will be s,ubject to an acceptable credit report <br />from these lenders. . <br /> <br />.. <br /> <br />4 <br />