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<br />Bull Creek Reservoir, Canal & Power Company Agenda Ite <br />January 23-24, 2007 <br />Page 4 of 5 <br />stated interest rate. The Company will finance 90% of the total Project cost with a CWCB loan. T <br />remaining cost will be paid by a special assessment of the shareholders and Company cash <br />reserves. The Company has adjusted the assessment fates as needed for the last four years in <br />order to cover operating and repair costs resulting in an overall average financial strength. Rate <br />increases were as follows: 2000 - $5/share; 2001 - $7/share; 2002 - $20/share; 2004 - $30/share <br />2005 - Current $50/share. <br />Table 1. Financial Summary <br />I PROJECT/LOAN <br />I Total Project Cost $1,333,000 <br />I CWCB Loan (90% of Total Project Cost) $1,200,000 <br />I CWCB Annual Loan Payment $57,300 <br />I CWCB Loan Obligation (includinQ 10% debt reserve funding) $63,030 <br />Special Assessment per Share (500 shares) $270/share <br />IAnnual Assessment per Share for Project Only (500 shares) $126/share <br />Total Cost per Acre-Foot of Recovered/New Storage (418 AF) $3,200/AF <br />ICOMPANY Current Future <br />IShare Assessment $50/share $150/share <br />[Annual Water Delivery 650 ac-ft 900 ac-ft <br />Creditworthiness: The Company will payoff a current loan of $160,000 held by the Palisades <br />National Bank (PNB) in Palisade, Colorado with a portion of the CWCB loan. The PNB loan was <br />used to begin reconnaissance work on this Project. The Company will have no other debt service <br />this Project. Repayment will be accomplished by increasing share assessments as necessary. <br /> <br />, <br />. <br /> <br />m91J <br /> <br />he. <br /> <br />on. <br /> <br />Table 2 shows the lnanCla atlos or t e ompany. as reserves are wea w IC IS tYPlca 0 <br />irrigation companies since they attempt to set assessment rates at or near operating costs. <br /> Table 2. Financial Ratios <br /> Financial Ratio Without Project With Project <br /> Future Years <br /> Operating Ratio (revenues/expenses) 1 00% (Average } 1 OO%(Average} <br /> I weak: <100%' -I average: 100% - 120%' -I strong: >120%' $10K/10K $10K/10K <br /> Debt Service Coverage Ratio No Debt 103%(Average} <br /> (revenues-expenses)/debt service <br /> I weak: <100% 1- I average: 100% - 120% 1- I strano: >120%. $75-10K/63K <br /> Cash Reserves to Current Expenses 40%(Weak) 40%(Weak) <br />I I weak: <50% ~ -I average: 50% - 100% , - I strong: >100%1 $4K/10K $4K/10K <br /> Annual Operating Cost per Acre-Ft Delivered* $15(N/A) $83(N/A) <br /> Iweak: >$20' -I average: $10 - $20' - I strong: <$10' $10K/650 $75K/900 <br /> · based on current delivery of 650 AF and a future delivery of 900AF <br /> <br />F <br /> <br />IR <br /> <br />f h C <br /> <br />C h <br /> <br />k h h <br /> <br />I f <br /> <br />. <br />