C153857 Feasibility Study

• Contract/PO #: C153857
• Contractor Name: Western Mutual Ditch Company
• Contract Type: Loan
• Water District: 2
• County: Weld
• Bill Number: SPL
• Loan Projects - Doc Type: Feasibility Study

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Western Mutual Diversion Repairs and Improvements
eWeB Feasibility Study
May 6, 1998 (Revised December 29, 1998)

The Company would retain a ten percent cash reserve for future capital expenditures, repairs, and
for a one-year loan reserve.

Table 5

Summary of Income from Central Recharge Project
Western Mutual Ditch - Diversion Repairs and Improvements

Year Recharge Income Year Recharge Income
(acre-feet) (acre-feet)
1987 1,173 $ 3,519.00 1993 1,264 $ 3,792.00
1988 0 $ 0.00 1994 1,018 $ 3,054,00
1989 0 $ 0,00 1995 0 S 0.00
1990 597 $ 1,791.00 1996 0 $ 0,00
1991 415 $ 1,245,00 1997 0 $ 0.00
1992 571 $ 1,713.00 Average 458 $ 1,374.00

A cash flow analysis for a $100,000 Small Project Loan at 3.75 % interest over a 20-year repayment
period is included as Table 6 of this report. For the analysis it was assumed that the Small Project
Loan money would be available in 1999 with repayment beginning in 2000, Annual debt service
for the loan amounts to $7,196 per year or $9,00 per share ($7,196/800 shares) and an average of
$0.37 per acre-foot per year of irrigation water diverted in 1950 through 1997. Annual assessments
for all costs related to this project, except forthe first year's cash costs, are a maximum of $10.56
per share ($12.28 per share per year if the recharge project revenues are not considered). The
column entitled "Cash Payment" is the amount of the anticipated costs which would not be
provided by the Small Project Loan and would likely come from a special assessment.

Collateral

The Ditch Company has the following collateral it can offer for the CWCB loan:

1, Pledge of a revenue stream from Ditch Company assessments.

2. The project itself. The project will be owned by the Ditch Company and can be offered by
vote of the Board of Directors,

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