BOARD01687

• Board Meeting Date: 1/24/2001
• Description: CF Section - Supply Irrigating Ditch Company
• Board Meetings - Doc Type: Memo

200
. Supply Irrigating Ditch Co, Agenda Item 11b,
Januaoy 24-25, 2001,
'J 5. Placement of riprap on the upstream face of both dams,
. 6, Raising the dam crest on both dams to gage height 30 feet.
7, Removal of the two abandoned outlets and backfill with compacted clay,
8, Repair of the existing outlet to good working condition.
The implementation schedule calls for completion of financing arrangements in winter
2000/2001, with formal approval and resolution by the SIDC shareholders in summer 2001.
Smith Geotech will finalize engineering design in spring 2001. Construction will begin in fall
2001 and will take about 6 months to complete,
Financial Analvsis
The total estimated cost of the project is $1,900,ooO, Staff is recommending that the CWCB
Board approve a Construction Fund loan of $1.700,000 (90%) percent of the estimated cost.
AlternatIve fInancIng sources: The Company actively sought alternative financing. They were
not able to obtain a grant from the NRCS to cover project planning or construction costs. The
SIDC also requested a loan from their bank (The First National Bank of Longmont) but were
turned down because (the bank does not provide long-term fixed rate financing for agricultural
projects.
There are 400 shares within the SIDC, of which agricultural interests own 387.5 shares, and
municipal (average income) interests own 12.5 shares. The weighted Int~rest rate between the
3,5% agricultural rate and the 5.5% municipal average rate is 3,56%. In accordance with
. CWCB procedure, the rate is rounded down to 3,5%, which is the recommended interest rate
for this loan.
Table 1 Is a summary of the financial aspects of the project. Annual assessments will increase
from $100 per share, up to $354 per share with a CWCS loan payment of $101,674. This
represents an annual assessment increase of $254, or $10, 13 per acre-foot, based on average
annual diversions 10,040 acre-feet (Including 542 acre.feet of new storage,)
Table 1. Financial Summary
Prolect Cost $1,900 000
Total CWCB Loans (90% of Pr~ct Cost) $1.700000
CWCS Loan Payment Amount inclUding 10% loan reserve $101,674
Number of Shareholders 160
Number of Shares of Stock 400
Current Assessment osr Share $100
Future Assessment per Share $354
Annual Project Cost per acre.foot $10.13
I (Average annual diversions: 10,040 acre-feet with the project)
CredIt worthIness; SIDC has one existing debt In amount if $31,600 to the First National Bank
of Longmont, upon which all payments have been made as agreed, A condition of the cwes
loan will be that the bank subordinates Its debt position, Table 2 shows the Financial Ratios and
. Indicates average ability to repay with the project in place.
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