PROJC00465 ‎(2)‎

• Contract/PO #: C150083
• Contractor Name: John Peroulis and Sons Partnership
• Contract Type: Loan
• Water District: 44
• County: Moffat
• Loan Projects - Doc Type: Approval Letter

John Peroulls & Sons Partnership
September 24-25. 2001

Agenda Item 16b.
(Updated September 26, 2001)

Table 1 is a summary of the financial aspects of the project. A CWCB Small Project Loan of
$1 OOK would have an annual payment of $5,981 (including the 10% reserve requirement) at
the loan terms of 3.5% for 30 years, This represents $23,92 per acre-foot, based on a reservoir
storage capacity of 250 acre-feet.

Table 1. Financial Summary

Proiect Cost $150,000
Number of Shareholders 1
Number of Shares of Stock N/A
CWCB Loan Amount $100,000
CWCB Loan Payment !includes 10% reserve) $5,981
Annual Loan Cost oer acre-foot (Reservoir volume: 250 ac-ft.) $23.92

Credit worthiness: The JPSP has 2 existing loans with Lend Lease Agri-Business of
Englewood Colorado. The outstanding balance for these loans is $3,95 million, Loan approval
will be subject to an acceptable credit report from this lender. Table 2 shows the Financial
Ratios for the JPSP and indicates that 3 of the 4 ratios are in the weak category with the $1 OOK
CWCB loan in place, Partnership income varies from year to year depending on the agricultural
market and one-time land purchase and sale events,

Table 2. Financial Ratios

Financial Ratio Without With
The oroiect The oroject
Operating Ratio (revenue/expense) 200% 200%
weak: less than 100% (strong) (strong)
average: 100% - 120%
stronc: creater than 120%
Debit Service Coverage Ratio 79% 77%
{revenues-expenses )/debt service (weak) (weak)
weak: less than 100%
average: 100% - 125%
stronn: nreater than 125%
Cash Reserves to Current Expense 35% 21%
weak: less than 50% (weak) (weak)
average: 50% - 100%
strono: createrthan 100%
Annual Cost per Acre-Foot (250 ac-ft) $ 4,00 $24,00
weak: greater than $20 (strong) (weak)
average: $10 - $20
strono: less than $10

As security for the loan the JPSP will piedge facilities, water rights, and/or other real property of
value equal to the loan amount, and which is unencumbered by existing debt. Because of the
variation in Partnership income stream, loan approval should aiso be subject to a lender title
policy verifying ownership of the security by the partnership, and an appraisal confirming the
value of property pledged. This security is in compliance with CWCB Loan Policy #5
(Collateral).

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