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Glenwood Irrigating Company July 23-24. 2001 Agenda Item 9a. (Updated July 26, 2001) 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 Bank 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 Funding Source Grant Loan NRCS Planninq and Desiqn $10,000 NRCS Feasibilitv Studv $5,000 Colorado River WCD $15,000 GIC' $9,000 CWCB $85,000 Total ($124,000') $39,000 $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 CWCB 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 Proiect Cost $124,000 Number of Shareholders 69 Number of Shares of GVIC Stock 1500 CWCB Loan Amount $85,000 CWCB Loan Pavment !includes 10% reserve) $6082 Current Assessment per share $10.00 New Assessments per share $14.05 Annual Loan Cost per acre-foot (YR 2000 diversions: 6,600 acre-feet.) $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 CWCB loan with the project in place. 3