BOARD02459

• Board Meeting Date: 11/19/2003
• Description: CF Section - New Loans - Johnson and Edwards Ditch Company - Well Augmentation Project
• Board Meetings - Doc Type: Memo

""""-,~f_",,i)iIcllCW''''''~
_1J.2<,2ilIlJ

~'''''''8<<

Selected Alternative 3 oonsists of the following:

.

Consl(\.Jcllwo new red'targe ponds w,lh small earthen dams, on noo--imgated farm
ground.

.

On' a 3,000 GPM rectlarge well Wltl'lln 100 feel 01lhe South Plalle R,ver,

. Const(\.Jcta15-,nch diamettif pipeline between the recharge well anCllhe d,tch. ThtS
pipe~i'\e WIll be 2,400 feel In length.

. PurchaseoneshareofJacksonLak@Reservoirwater(nelyiefd6acre-feet,}

. Ins!allmeasunngdevlcesOflaIl1eatur@softheprOJect
The implemerllahOll schedule calls IOf COmpletoO'1 01 finanCing arrangements and final oesign ill
Fall 2003. COO$tn.chor, INOUlo be completed if\ Fa~-Winter 2003,

Financial Analnls
Thelolalest,mateooostollhepro)ectis$147,222(Includingengineering cosls),and water is
used lor agricultural purposes, Starf is recommendIng a Small Project loan in ma~imum amount
of $132,500 (90% of the total project costs,) The reeommended loan terms a re30yearsat
2,5%,20year!lat 2,25%,or 10 years 2%. at the borrower's option.

Table 1 .s a sUflVTlIIry of the flllanClilI aSpllCls of ,he proJeCt with a $132,500 ewes Loan. The
annual paymenl would be $6.964 (including the 10% reserve reQllirement) at the loan terms of
25%for30yean Thisfepresents SQ,78 peracfll-fOOt, baseCl 0fI expected annll.llldiver!ltQflS
018,900 acre-feel The Company's COSI shafe will come from a one-bme special assessment of
lheshareholders,

Table 1, Financial Summary

Pr eClCosI
NllmMrof Sharet!olders
Number of Shares of Stock
eWC8 Loan Amount
ewcs loan Pa nl Illcludes 10% reserve
Cu"6I"Ila~S$I\'l8ntper$hare
New Hse-wnef1t~5hare (with ewCB loan
New asseument per share (with eweB loan and $10,00Q/y8.ar Q&M C03la
AnnuatIQancost acre.fool.. d~.8.IlOO_n

$147222
,
1500
$132500
$6,964
$7
."
$18
$0,78

Crodit worthiness: The JEDC has no existing debt. , Table 2 shows lhe Financial Ralios for
the JEDC and indicates, with thll exception 01 Cash Res8rY9$, a~efage to Slrong abll,ty to repay
a $132,500 eWeB loan w'lh Ihe prOject in place (Nole: Shareholders of \he JEDe previoUsly
were members 01 GASP undef" which they woul~ now pay a IOlal of $25,000 pe1 year to
augmenllhe.r wells, These GASP d...es can I'lOW be used to pay assessments oIlhe crwW.1

,