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<br />The Glenwood Irrigation Company has requested a 30-year loan from the CWCB. The blended <br />interest rate (determined by the CWCB) would be 5%, resulting in annual payments of $6,082, <br />include 10% for the emergency reserve account. <br /> <br />Table 3 is a summary of the financial aspects of the project. Annual assessments will increase <br />by $4.05 per share to meet the annual loan payment. <br /> <br />a e . III an CIa ummary <br />Project Cost (Construction only) $108,962 <br />Loan Amount (about 78% of Project Cost) $85,000 <br />CWCB Loan Payment Amount, includinq 10% loan reserve $6,000 <br />Number of Shareholders 69 <br />Number of Shares of Stock 1500 <br />Current Assessment per Share $10.00 <br />Future Assessment per Share $14.05 <br />Annual Loan Cost per acre-foot $0.92 <br />(Based on year 2000 diversions of 6,600 acre-feet) <br /> <br />T bl 3 F. . I S <br /> <br />Operation and maintenance costs are expected to decrease with the new diversion structure, <br />and can be accommodated by the Company's existing budget. <br /> <br />Credit worthiness: Glenwood Irrigation Company has no existing debt. Table 4 shows the <br />Financial Ratios for the Glenwood Irrigation Company and indicates average to strong ability to <br />repay with the project in place. <br /> <br />Table 4. Financial Ratios <br /> <br />Financial Ratio Without With <br /> the project the project <br />Operating Ratio (revenue/expense) 91% 111% <br />weak: less than 100% (weak) (average) <br />average: 100% - 120% <br />strong: greater than 120% <br />Debit Service Coverage Ratio No debt 140% <br />(revenues-expenses )/debt service (strong) (strong) <br />weak: less than 100% <br />average: 100% - 125% <br />stronQ: Qreater than 125% <br />Cash Reserves to Current Expense 106% 73% <br />weak: less than 50% (strong) (average) <br />average: 50% - 100% <br />strong: greater than 100% <br />Annual Cost per Acre-Foot (6,600 AF) $ 2.30 $3.45 <br />weak: greater than $20 (strong) (strong) <br />average: $10 - $20 <br />stron~:): less than $10 <br /> <br />Glenwood Irrigation Company <br />Diversion Feasibility Study <br />June 2001 <br /> <br />Page 10 of 11 <br />