BOARD01618

• Board Meeting Date: 7/23/2001
• Description: CF Section - Cedar Mesa Ditch and Reservoir Company
• Board Meetings - Doc Type: Memo

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Cedar Mesa Ditch and Reservoir Company
July 23-24, 2001

Agenda Item 9b,

balloon. The Sank did not offer permanent long term financing. Table 2 is a summary of
financing for the project:

Table 2: Project Funding Sources

Grant
$6,000

Loan

$4,850

$10,000
$6,500

$100,000

$4,317
15,167

$116,500

(*CMDRC will cover any costs exceeding the estimated project cost.)

Table 3 is a summary of the financial aspects of the project. A CWCS Loan of $100,000 would
have an annual payment of $5,981 (including the 10% reserve requirement) at the loan terms of
3.5% for 30 years. This represents $6.62 per acre-foot, based on average diversions of 903
acre-feet.

Table 3: Financial Summary

Pro'ect Cost
Number of Shareholders
Number of Shares 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

$131,667
24
400
$100,000
$5,981
$25.00
$40.00
$6.62

Credit worthiness: CMDRC has taken out 5 small loans over the past 30 years to help finance
repair and rehabilitation of the Cedar Mesa dam. Lenders include the First National Sank of
Cedaredge, the Colorado Water Conservation Board, K. Hartst (private individual), and the
Cedar Mesa Ditch Company, All these loans were repaid as agreed.

CMDRC has 2 loans outstanding, totaling $16,500, for engineering and instrumentation
associated with the current rehabilitation project. These loans are also being repaid as agreed.

Table 3 shows the Financial Ratios for CMDRC and indicates average ability to repay the
$100K CWCS loan with the project in place.

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