BOARD02190

• Board Meeting Date: 7/23/2001
• Description: CF Section - Glenwood Irrigation Company
• Board Meetings - Doc Type: Memo

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Glenwood Irrigating Company
July 23-24, 2001

Agenda Item ga.

Alternative financing sources: The Company actively sought alternative financing, They were
able to obtain a grant from the NRCS to cover project planning and design (approximate value
$10,000) and to cover completion of the Feasibility Study (approximate value $5,000). The GIC
also applied for and expects to receive a $15,000 grant from the Colorado River Water
Conservation District. They requested a loan from their local bank (US Sank of Glenwood
Springs) but were turned down because the bank does not provide long-term fixed rate
financing for agricultural projects. Table 2 is a summary of funding sources for the project:

Table 2: Project Funding Sources

Grant
$10,000
$5,000
$15,000
$9,000

Loan

$39,000

$85,000
$85,000

("The GIC will also cover any costs exceeding the estimated project cost.)

Table 3 is a summary of the financial aspects of the project. A CWCS Loan of $85,000 would
have an annual payment of $6082 (including the 10% reserve requirement) at the loan terms of
5% for 30 years. This represents $0.92 per acre-foot, based on year 2000 diversions of 6,600
acre-feet.

Table 3. Financial Summary

Pro'ect Cost
Number of Shareholders
Number of Shares of GVIC Stock
CWCS Loan Amount
CWCS Loan Pa ment includes 10% reserve
Current Assessment er share
New Assessments er share
Annual Loan Cost er acre-foot YR 2000 diversions: 6,600 acre-feet.

$124,000
69
1500
$85 000
$6082
$10,00
$14.05
$0.92

Credit worthiness: The GIC has no existing debt. Table 4 shows the Financial Ratios for the
GIC and indicates average to strong ability to repay the $85K CWCS loan with the project in
place.

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