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<br />Loma [)tch and lateral Company <br />Seplemt>er 11.12. 2002 <br /> <br />Agenda Item 12e <br /> <br />Table 2 is a summary of the financial aspects of the project. A CWCS Small Project Loan of <br />$178,000 would have an annual payment of $9,669 (including the 10% reserve requirement) at the <br />Joan terms of 2.75% for 30 years. This represents an annual loan cost of 52.76 per acre-foot, <br />based on an average annual delivery of 3,505 acre-feet. <br /> <br />Table 2, Financial Summary <br /> <br />Project Cost I 5278,041 <br />Number of Shareholders 81 <br />Number of Shares of Stock 790 <br />CWCS Loan Amount {30 vears\ $178,000 <br />CWCS Loan Pavment (includes 10% reserve\ - Seoin 2003 I 59,669 <br />Current Assessment Der share (2002) $10 <br />New Assessments oer share $13 <br />Annual Loan Cost oer acre-foot laver. annual delivery: 3505 ae-ft.' $2.76 <br /> <br />Creditworthiness: The LDLC has no existing long-term debt. The Company does owe $4300 from <br />the previous phase of construction that they are paying off as special assessment revenue is <br />received. (In 2002 LDLC has a base assessment of $10 per share but a total assessment of $33 <br />per share which includes a special assessment for their construction project.) They expect to have <br />the $4300 paid off by December 31, 2002, as the Company has the authority to sell the stock of <br />delinquent shareholders who have not paid assessments by December 1. <br /> <br />The CWCS loan will be repaid from increases in the base assessment rate from $10 to $13 per <br />share. Table 2 shows the Financial Ratios for the LDLC and indicates, with the exception of cash <br />reserves, average to strong ability to repay the S 178,000 loan. <br /> <br />Table 3, Financial Ratios <br /> <br />Financial Ratio Without With project <br /> th~ pro~~ct Future Years <br /> 2002 2003+ <br />Operating Ratio (revenue/expense) <br />weak: less tI'1an 100% +120% +120% <br />average: 100% - 120% (strong) (strong) <br />strona~ areater than 120% <br />Debit Service Coverage Ratio I <br />(revenues-expenses)/deot service N/A 103% <br />weair.. less tI'1an 100% (aver.) <br />average: , 00% - 125% <br />stronn~: nreaterthan 125% <br />Cash Reserves to Current Expense <br />weak: less than 5C% 38% 30% <br />average: 50% - 100% (weak) (weak) <br />suon';' "reater than 100% <br />Annl.'al Operatins Ccst per Acre-Ft. (3505 AF) I <br />weak: g:~ea:er than $20 52.25 S2.;3 <br />average S 1 0 . $20 I (strong) I (5"ong) <br />s~o'\c' less :t1ar 510 <br /> <br />Page 4 of6 <br />