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Table 3 is a summary of the financial aspects of the project. Annual assessments will increase by $17.40 per share to meet the annual loan payment. a e . man cia ummarv Project Cost (Construction only) $514,250 Loan Amount (about 75% of Proiect Cost) $385,688 CWCB Loan Payment Amount, includino 10% loan reserve $24,536 Number of Shareholders 69 Number of Shares of Stock 1410 Current Assessment per Share $22.00 Future Assessment per Share $39.40 Annual Loan Cost per acre-foot $3.72 (Based on year 2000 diversions of 6,600 acre-feet) T bI 3 F' . I S Operation and maintenance costs are expected to decrease with the new siphon, and can be accommodated by the Company's existing budget. Credit worthiness: The GIC recently had a construction loan with the Alpine Bank of Glenwood Springs for which all payments were made as agreed. That loan will be paid off with the proceeds from the $85,000 CWCB loan that was approved in 2001. Table 4 shows the Financial Ratios for the GIC and indicates, with the exception of Cash Reserves, strong ability to repay the additional $514K CWCB loan with the project in place. Table 4. Financial Ratios Financial Ratio Without With The proiect The oroject Operating Ratio (revenue/expense) 108% 125% weak: less than 100% (average) (strong) average: 100% - 120% strong: greater than 120% Debit Service Coverage Ratio 143% 141% (revenues-expenses )/debt service (strong) (strong) weak: less than 100% average: 100% - 125% strono: oreater than 125% Cash Reserves to Current Expense 50% 39% weak: less than 50% (average) (weak) average: 50% - 100% strong: greater than 100% Annual Cost per Acre-Foot (6,600 AF) $4.54 $6.36 weak: greater than $20 (strong) (strong) average: $10 - $20 strong: less than $10 Glenwood Irrigation Company Siphon Feasibility Study May 2002 Page 10 of 11