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<br />FINANCIAL PLAN <br /> <br />The total estimated cost ofthe project is $5,100,000. Two primary shareholders, the Town of Windsor <br />and the Hall-Irwin Corporation, own shares in the Kern Reservoir and Ditch Company. Hall-Irwin is <br />headquartered in Greeley and has participated in the construction of more than 1,500 commercial and <br />residential subdivisions along the Front Range, as well as many cross-county transmission projects. <br />Hall-Irwin is a commercial borrower, and the CWCB commercial lending rate of 6.0 percent (30-year <br />term) would apply to their portion of stock in the Kern Reservoir and Ditch Company. The Town of <br />Windsor is a municipality with median household income of more than 110 percent of the Statewide <br />median, qualifying it for the CWCB high-income municipal rate of 4.75 percent (30-year term.) The <br />blended rate for a loan to the Kern Reservoir and Ditch Company is calculated as follows: <br /> <br />TABLE 1: KERN RESERVOIR AND DITCH COMPANY <br />SHARE OWNERSHIP AND BLENDED INTEREST RATE <br /> <br />Shareholder Rate Category Year 2002 Rate # Shares Rate x Shares <br />Town of Windsor Municipal 4.75% 70 332.5 <br /> Hi~h Income <br />Hall-Irwin Commercial 6.0% 30 180 <br />Corporation <br /> Totals 100 512.5 <br />Blended rate for Kern Reservoir and Ditch Blended Rate = 512.5 /100 shares 5.1 % (rounded down to <br />Company nearest 0.1 %) <br /> <br />The blended interest rate for the Kern Reservoir and Ditch Company would be 5.1 percent for a 30-year <br />loan. (by similar calculation, the 20-year loan rate would be 4.8 percent). The Company is requesting an <br />initial small project loan of$l million, and plans to submit an application for a standard loan of up to <br />$2.75 million. The initial loan represents approximately 20 percent of the total project cost. . <br /> <br />Table 2 is a summary of the financial aspects of the project. A CWCB Small Project Loan of$l million <br />would have an annual payment of$72,375 (including the 10 percent reserve requirement) at the loan <br />terms of5.1 percent for 30 years. The total amortized cost of this project will be approximately $130 per <br />acre-foot, based on the new total reservoir storage capacity of2,600 acre-feet. <br /> <br />TABLE 2: FINANCIAL SUMMARY <br /> <br />Proiect Cost $5,100,000 <br />Number of Shareholders 2 <br />Number of Shares of Stock 100 <br />CWCB Loan Amount (initial Small Proiect Loan.) $1,000,000 <br />CWCB Loan PavmenUincludes 10 percent reserve) $72,375 <br />Current assessment per share $100 <br />New Assessment per share (with Initial $1 million loan in place) $824 <br />Annual Loan Cost per acre-foot (New total volume: 2,600 acre-feet) $28 <br /> <br />Feasibility Study <br />Kern ReselVoir Enlargement <br /> <br />- 5- <br /> <br />August 2002 <br />1:\0636_142\Windsor Lake FS_doc <br />