BOARD02507

• Board Meeting Date: 7/24/2000
• Description: CF Section - Rate of Return Estimates for 2000 Loans and Grants
• Board Meetings - Doc Type: Memo

the disbursement of all funds in 2000) to provide an estimate without unnecessarily complicating
the analysis.

The results of the analysis indicate a rate of return of 4.12 percent for loans only and 1.45 percent
for loans plus non-reimbursables. (The calculations are summarized on the attached sheets.) The
rate of return is dependent upon the lending rate structure, the types and amounts of loans made
and the amount ofnon-reimbursables in any given year. As shown in Table 1, loans and non-
reimbursables are about $8.0 million and $1.59 million respectively for 2000.

Table 1. Construction Fund Loans and Non-Reimbursables for 2000

Borrower/Project Loan Years Rate
Amount
Chilcott Ditch Co. $250,000 30 4.00%
Diversion Structure Rehabilitation
Consolidated Mutual Water Co. $6,300,000 10 5.00%
Fortune Reservoir
Excelsior Irrigating Co. $21,125 30 4.00%
Excelsior Ditch Rehabilitation
Model Land & Irrigation Co. $335,000 30 3.75%
Model Dam Repair
City of Ouray $30,000 20 4.75%
Skyrocket Creek Deflection Structure Rehab.
Windsor Reservoir and Canal Co. $1,155,000 30 4.00%
Canal and Dam Rehabilitation
Total Loans $8,091,125
Non-Reimbursable Items $1,593,000
Total Loans and Non-Reimbursable Items $9,684,125

Table 2 summarizes the total amounts ofloans and non-reimbursables as well as the rates of
return for 1998 through 2000 for loans only and for loans and non-reimbursables combined. The
table also gives average dollar amounts and weighted average rates of return for the three years.

Table 2. Rate of Return Summary

Year Construction Rate of Construction Rate of Return
Fund Loans Return Fund Non- Loans Plus Non-
Loans Only Reimbursable Reimbursable
2000 $8,091,125 4.12 % $1,593,000 1.45 %
1999 $19,852,033 4.43 % $4,133,380 1.91 %
1998 $14,569,000 4.13% $2,571,000 2.72 %
Average $14,170,158 4.27% $2,765,793 2.10%
1998-2000

2

,x'~."
1tl-~

e

e

e