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<br />" <br /> <br />, <br /> <br />The Company presently has three Construction Fund loans with a total outstanding <br />balance of$I,449,601 on which the Company is current. These three loans represent the <br />Company's entire long-term debt. <br /> <br />. <br /> <br />Smith Geotechnical prepared a 37-year projection of revenues and expenditures to cover <br />the entire period of debt retirement for all CWCB loans including the new loan. The <br />projection indicates that following construction of the three projects, cash flow is <br />generally positive and debt service coverage should be adequate. <br /> <br />Discussion <br /> <br />As a result of the additional funding, the Company's per share assessment will increase <br />by about $240 per year. The current assessment is $222 per share. Average annual yield <br />is about 30 acre-feet per share. <br /> <br />The additional cost due to the project will amount to $8.00 per acre-foot of system yield <br />per year. The total cost for the entire assessment of about $460 per share will be $15 per <br />acre-foot per year. These numbers indicate that the project is economically feasible. Staff <br />believes that the project is also technically and financially feasible based upon the <br />information provided by the applicant. <br /> <br />The lending rate for the $633,218 remaining on the loan for the Poudre Valley Canal and <br />Cobb Lake is 4.15 percent. Staff is proposing that the lending rate for the new $1,155,000 <br />increment of financing be at 4.00 percent, which is the Board's adopted agricultural <br />lending rate for 2000 for a 30-year loan term. The overall rate of return for a loan of <br />$1,788,300 would be 4.05 percent. <br /> <br />. <br /> <br />Recommendation <br /> <br />Staff recommends that the Board recommend to the General Assembly an increase in the <br />Windsor Reservoir and Canal Company's Construction Fund authorization for the <br />Company's rehabilitation program in the amount of$I,155,000. The new authorization <br />would be combined with the funds remaining in loan contract no. C-153725 for a new <br />loan of about $1,788,300 for the Annex No.8, Elder Reservoir and Windsor Reservoir <br />No.8 projects, not to exceed 90 percent of the total costs for the three projects. <br /> <br />The lending rate for the funds remaining in loan contract no. C-153725 would be 4.15 <br />percent. The lending rate for the new increment of funding would be 4.00 percent. As <br />security for the loan, the Company will pledge revenues from assessments and other <br />sources backed by an assessment covenant and annual financial reporting as well as a <br />security interest in the three reservoirs. <br /> <br />. <br /> <br />4 <br />