BOARD00347

• Board Meeting Date: 1/22/2003
• Description: CF Section - Low Line Ditch Company
• Board Meetings - Doc Type: Memo

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Low Line Ditch Company
January 22-23, 2003

Agenda Item 19h

Selected Alternative 3 consists of the following:

. Four recharge ponds will be constructed along the Low Line Ditch. Ponds will be located
on ground that is considered low value and currently not used for growing irrigated
crops.

. Each pond will have a turnout built into the ditch which will include a measuring device
with a recorder. Proper measurement is a requirement of the. Division of Water
Resources.

. The augmentation well would be drilled away from the river and next to the ditch. The
well could be pumped directly into the Low Line ditch or by using an existing drainage
way could be P4mped into the South Platte River.

The implementation schedule calls for completion of financing arrangements and final design in
January 2003. Construction would be completed by March 2003.

Financial Analvsis
The total estimated cost of the project is $105,000 (including engineering costs). Water is used
for agricultural purposes and the Staff is recommending a Small Project loan in maximum
amount of $94,500. The recommended loan terms are 30 years at 2.75% or 20 years at 2.5%,
at the borrower's option.

Table 1 is a summary of the financial aspects of the project with a $94,500 CWCS Loan. The
annual payment would be $5,134 (including the 10% reserve requirement) at the loan terms of
2.75% for 30 years. This represents $0.77 per acre-foot, based on average annual diversions of
6,650 acre-feet.

Table 1. Financial Summary

Pro'ect Cost
Number of Shareholders
Number of Shares of Stock
CWCS Loan Amount
CWCS Loan Pa ment includes 10% reserve
Current assessment er share
New assessment er share
Annual Loan Cost er acre-foot

$105,000
14
320
$94,500
$5,134
$25
$41
$0.77

Credit worthiness: The LLDC has no existing debt. Table 2 shows the Financial Ratios for the
LLDC and indicates, with the exception of Cash Reserves, average to strong ability to repay a
$94,500 CWCS loan with the project In place.

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