PROJ00358

• Contract/PO #: C153717
• Contractor Name: South Platte Ditch Company
• Contract Type: Loan
• Water District: 64
• County: Logan
• Bill Number: SPL
• Loan Projects - Doc Type: Feasibility Study

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Financial Plan

Sources of financing for the project consist of cost share assistance from the Department of
Agriculture (CFSA) in the net amount of $42,890 .at a cost share rate of 64% of the actual
cost. The balance will come from cash reserves and a $100,000 loan from the Colorado
Water Conservation Board (CWCB). The SPDC Resolution to apply for CWCB loan, the
CWCB Loan Application, and the CWCB Memorandum of Loan Approval and Approval
Letter are found in Appendix E.

The financial condition of the Company is solid at the present time. The Company has no
obligations except current operating expenses and is not in default on any of its obligations,
The SPDC Financial Statements for 1993, 1994, and 1995 are found in Appendix F.

The Company currently has 206,9 shares of stock issued and outstanding with an annual
assessment to stockholders of $80 per share through 1995. In 1996 the assessment will be
$120 per share and is expected to drop to $100 per share in 1997. The increase is to cover
possible flood damage in 1996, and loan repayment. If necessary, the Company can increase
the assessments charged to stockholders, by a majority vote of the stockholders, The SPDC
delivered 67.5 ac-ft per share in 1994, so a $100 assessment amounts to about $1.50 per ac-ft.

The Company has a contract with the Groundwater Appropriators of the South Platte (GASP)
for the Company to sell all of its recharge water to GASP (see Appendix G). A table of
historical income from the GASP contract is also included. A portion of this income will be
used to repay the loan to the CWCB. The Company would retain a cash reserve of
approximately $30,000 for future capital expenditures and repairs

A table showing cash flow for a $100,000 CWCB loan at 4,25 % interest over a 30-year
repayment period is included in the report. Annual debt service amounts to $28.80/share
($5980 1 206,9 shares) and $0.42 per acre foot diverted in 1994 ($5960 113969 ac ft.)
However, when annual Gasp income of $7500 is considered, the annual per share assessment
for the project is only $6.76 ($1400 1 206.9 shares.)

Collateral

The Company has the following collateral it can offer for the CWCB loan, in this order of
preference:

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

2. A portion of the revenues from the Company's Recharge Project.
The project has historically brought in revenues between $5,000
and $10,000 annually. This could also be approved by vote of
the Board of Directors,

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