BOARD01520

• Board Meeting Date: 5/24/2004
• Description: CF Section - Changes to Existing Loans - Town of Kremmling - Raw Water Delivery System
• Board Meetings - Doc Type: Memo

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e FINANCIAL ANALYSIS

The total estimated cost of the project is $2,447,750, of which the Town is requesting a
Construction Fund loan of$I,689,750, which is approximately 69% of the total project cost. The Town is
requesting an amendment to their existing $1,000,000 loan with CWCB in the amount of $689,750 for a
new loan amount of $1,689,750. Funding includes participation from a number of other agencies as
summarized in Table 3 below:

Table 3 - Sources of Funding

Entity Grant Loan Contribution Particination
CWCB $1,689,750 69,0%
DOLA $603,000 24.5%
River District $15,000 0.60%
Kremmling $140,000 5,70%
Totals: $618,000 $1,689,750 $140,000 100.0%

The cost of the pennitting, attorney fees, water rights purchase, and water court will be paid for
separately by the Town through their in-kind contribution and by the use of their DOLA grant. The
estimated cost of these services is $488,000.

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Table 4 is a summary of the financial aspects of the project. The average monthly water bill will
need to be increased approximately $15.00 per tap in 2004 and an additional $7.00 per tap in 2005, to cover
the cost of the requested $1,689,750 CWCB loan and other outstanding debt.

Table 4 - Financial Summary

Project Cost $2,447,750
CWCB Loan Amount $1,689,750
CWCB Loan Payment (Includes 10% Reserve) $110,777
Current Monthly Water Bill (Residential) $23.20
Proposed Monthly Water Bill with Proiect 2004 $38.20
Proposed Monthly Water Bill with Project 2005 $45.20
Annual Loan Cost per acre-foot (400 AF) $277

The Town has an existing $500,000 outstanding debt with General Motors Acceptance Corporation
for their water treatment facility, with an annual payment $45,000, and a $21,474 outstanding debt with
DOLA with an annual payment of $11,549. The DOLA debt will be paid in full in 2005 and the General
Motors debt will be paid in full in 2019. All payments on these debts are current.

Table 5 shows the Financial Ratios and indicates, with the exception of cash reserve, all ratios in the
average and strong categories with the CWCB loan in place.

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Flood Protection. Water Project Planning and Financing. Stream and lake Protection
Water Supply Protection. Conservation Plarming