LPPD000411

• Contract/PO #: C150151
• Contractor Name: Windsor Reservoir and Canal Company
• Contract Type: Loan
• Water District: 0
• County: Larimer
• Loan Projects - Doc Type: Feasibility Study

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The 2002 assessment was $400.00 per share for the 8811/z shares of WRCC stock and $380 per
share for the 118 1/2 shares of No.2 Ditch stock. For 2003 the assessments were reduced to $150
and $100 respectively due to the poor outlook for the farm economy prior to the March snowstorm
and also due to a large amount of Company income from the rental of their Tunnel Water to the
City of Greeley for $725,000. This would be equivalent to an assessment of $725 per share of
stock in addition to the assessments indicated above. The projected total operating income for
2003 is estimated at $880,400. This compares with total operating receipts in 2002 of $557,471.

The [mancial condition of the company is solid at the present time. The company has total debt
of $3,418,000 for loans with the Colorado Water Conservation Board for rehabilitation of various
components of their system. For fiscal 2002, the Company had total operating revenues of
$557,471; operational expenses of $549,902; with an operating balance of $370,242. Cash and
Certificates of Deposit held by the WRCC at the end of 2002 equaled $484,011. Complete
[mancial statements for the years of 2002 and 2001 are included in Appendix C.

Credit Worthiness. The Company currently has several loans with the Colorado Water
Conservation Board. The loans are summarized as follows.
Loan Amount Annual Payment Maturity Date Balance
1. Douglas Reservoir $ 761,000 $ 53,994.82 2016 $ 534,475.35
2. Poudre Valley Canal $ 300,000 $ 17,879.47 2024 $ 252,312.80
3. Canal & Dams $ 2,357,000 $137,632.63(1) 2033(1) $2,357,000.00(1)

(1) Estimated - loan open until completion of project. Total loan authorization increased to $2,658,500 in May 2003 with revised annual payment of $155,058.

The Company has accrued interest of $53,057 as of May 31, 2003 for loan 3 above.

As indicated by their financial statements, their income exceeded their expenses in both 2002 and
2001 and they had cash reserves at the end on 2002 of $484,011 which is equal to 88 % of their
operating expenses in 2002. The Company [mancial position is strong, especially with the
extraordinary income expected from the rental of the Tunnel Water and with the amount of cash
reserves on hand at the end of 2002.

Alternative Financin2 Considerations. The Company has investigated alternative financing with
the Farmers Bank located in Eaton, Colorado. The bank has indicated they would consider a loan
for. the Company after review of their [mancial status. The loan would initially be a one year
revolving line of credit, prime plus 1-1/2 percent, floating, with an up front loan fee of V2 percent.
As of May 1,2003, the prime rate was 4.25% which would set the loan rate at 5.5% plus the V2 %
loan fee. Included in Appendix F is a letter from the bank stating their position.

Windsor Reservoir & Canal Feasibility Study

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