BOARD00321

• Board Meeting Date: 11/20/2000
• Description: CF Section - West Rhone Lateral Ditch Company
• Board Meetings - Doc Type: Memo

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West Rhone lateral O~ch Co.
November 20.21, 2000

Agenda Item 15h,

Table 1: Proiect Fundina Sources
Construction Phase
Fundina Source Grant Loan
NRCS Plannino and Desion $10,935
CWCS Loan $100,000
West Rhone Lateral Ditch Co. $ 583
Total ($111,518) $11,518 $100,000
Permanent Financina Phase
NRCS Planning and Design $10,935
NRCS Construction Cost share $27,000
CWCS Loan $73,583
Total ($111,518) $37,935 $73,583

If the WRLDC is successful in obtaining a grant from the CRWCD, those funds will be used to
reduce the CWCS loan amount to approximately $60,000.

Table 2 is a summary of the financial aspects of the project. Annual assessments of $31.25
would be needed to repay a CWCS Loan of $100,000. (The annual payment plus 10% reserve
requirement is $5,981.) This represents $14.79 per acre-foot, based on average annual
diversions of 541 acre-feet. (Note: When the WRLDC completes the project and receives the
$27,000 NRCS grant, the CWCS loan payment will reduce to $4001 and the needed
assessment to $20.20.)

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Table 2. FinanCial ummarv
Proiect Cost $111,518
Number of Shareholders 14
Number of Shares of Stock 130
Construction Phase
CWCS Loan Amount $100,000
CWCS Loan Payment (includes 10% reserve) $5,981
Added Assessment oer share $31
Annual Loan Cost per acre-foot (Average diversions: 541 acre-feeVvr) $11.06
PerrnanentFinancinaPhase
CWCB Loan Amount $73,000
CWCB Loan Pavment {includes 10% reserve! $4,001
Added Assessment per share $20
Annual Loan Cost per acre-foot (A veraqe diversions: 541 acre-feet/vr! $7.40

Credit worthiness: WRLDC has no existing debt. Table 3 shows the Financial Ratios for the
WRLDC and indicates, with the exception of cash reserves, average ability to repay the $1 OOK
construction loan with the project in place.

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