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<br />. <br /> <br />. <br /> <br />. <br /> <br />The Silt Water Conservancy District will cover any costs that exceed the estimated project cost. <br />For the CWCB portion of the financing, the Silt Water Conservancy District is requesting a 30- <br />year loan for $100,000 from the Construction Fund at a lending rate of 4%, resulting in annual <br />payments of$5,783,OI. <br /> <br />Since all other funding for the project is in the form of grants, the Company would have no other <br />debt service on this project other than a loan for this project. Operation and maintenance costs <br />are expected to be minimal, This would include periodic inspection ofthe inlet trash rack and <br />annual inspection of this section of the canal by the Board of Directors of the Silt Water <br />Conservancy District. <br /> <br />Credit worthiness: The only outstanding debt of the District is government loan with an <br />unmatured contract amount of $403,200, repayable to the Bureau of Reclamation. Payments to <br />the Bureau of Reclamation have been made in a timely manner and the loan is current. The <br />annual payment is $19,200,00, The original loan was for 50 years and about 21 more payments <br />are required. <br /> <br />Alternativefinancing considerations: The Silt Water Conservancy District has investigated <br />alternative financing sources, They have obtained engineering design and construction inspection <br />from the Natural Resources Conservation Service, However, long term financing could not be <br />attained elsewhere, USDA Rural Development no longer makes loans to irrigation companies <br />(unless the project involves domestic water supply,) The District's commercial bank (Norwest <br />Bank, Rifle, Colorado) offered financing at prime plus 1/2% (8,25%) with 20-year amortization, <br />This loan would adjust annually based on changes in the prime rate and is not considered a good <br />long-term solution, <br /> <br />Collateral: As security for the CWCB loan, the District will pledge an assessment income, the <br />Colorado River Diversion Project, and a certificate of deposit equivalent to one annual payment <br />of the loan ($5,783.01), <br /> <br />Insurance: Insurance is by Sam Potter Agency with the policy through the Titan Group of <br />Companies and St. Paul Insurance Company, <br /> <br />Table 4. Silt Water Conservancy District Financial Summary <br /> <br />Project Cost $164,400 <br />Loan Amount (61 % of Project Cost) $100,000 <br />CWCB Loan Payment Amount $5,783,01 <br />Number of Shareholders 215 <br />Number of Shares of Stock 13,752.25 <br />Current SWCD Assessment per Share $3.15 <br />Future Silt Water Conservancy District Assessment per Share $3,95 <br />Annual Project Cost per acre-foot (Average diversions: 54,775 acre-feet) $0,31 <br /> <br />Silt Water Conservancy District <br />Silt Diversion Project Feasibility Study <br />January 2000 <br /> <br />Page 12 of 15 <br />