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<br />Lake Meredith Reservoir Co. <br />March 24-26, 2003 <br /> <br />Agenda Item 24c. <br />(Updated March 27, 2003) <br /> <br />TABLE 3 . FINANCIAL SUMMARY <br /> <br />Item Amou nt <br />Total Project Cost $1,524,860 <br />Loan Amount from CWCB $1,000,000 <br />Loan Amount from First National Bank of Ordway $500,000 <br />Assessment for EnQineerinQ and Loan OriQination $10,000 <br />Grant for EnQineerinQ Feasibility $5,000 <br />CWCS Loan Payment (Annual) $63,613 <br />First National Loan Pavment (Annual) $67,934 <br />Total Loan Payments $131,547 <br />Number of Shareholders 85 <br />Number of Shares of Stock 40,621.385 <br />Current Assessment per Share (2002) $5.50 <br />Additional Assessment per Share (Both Loans) $3.24 <br /> <br />Credit worthiness: The LMRC has no existing debt. Table 4 shows the Financial Ratios for the <br />LMRC and indicates, with the exception of cash reserves, strong ability to repay the $1,000,000 <br />CWCS loan with the project in place. <br /> <br />Table 4. Financial Ratios <br /> <br />Financial Ratio Without With <br /> the oroiect the oroject <br />Operating Ratio (revenue/expense) 155% 129% <br />weak: less than 100% (strong) (strong) <br />average: 100% - 120% <br />strana: areater than 120% <br />Debt Service Coverage Ratio No Debt 160% <br />(revenues-expenses)/debt service (strong) (strong) <br />weak: less than 100% <br />average: 100% - 125% <br />strano: oreater than 125% <br />Cash Reserves to Current Expense 43% 18% <br />weak: less than 50% (weak) (weak) <br />average: 50% - 100% <br />strano: oreater than 100% <br />Annual Cost per Ac-Ft (Capacity 22,300 I 41,000 ac-ft) $10.00 $8.66 <br />weak: greater than $20 (average) (strong) <br />average: $10 - $20 <br />strano: less than $10 <br /> <br />As security for the loan the LMRC will pledge assessment revenues backed by assessment <br />covenant and the project itself. This security is in compliance with CWCB Loan Policy #5 <br />(Collateral). <br /> <br />4 <br />