C150240 Approval Letter

• Contract/PO #: C150240
• Contractor Name: Bull Creek Reservoir, Canal & Power Company
• Contract Type: Loan
• Water District: 0
• County: Mesa
• Loan Projects - Doc Type: Approval Letter

Financial Analysis
Table 2 is a summary of the financial aspects of the project.
Table 2. Financial Summary
Total Pro'ect Cost $1,602,000
CWCB Loan Amount $1,441,800
CWCB Loan Amount Includin 1% Service Fee) $1,456,218
CWCB Loan Payment $69,575
CWCB Loan Pa ent (Includin 10% Reserve) $76,533
Current Assessment Per Share $150
Future Assessment Per Share $175
Total Number of Shares 500
Future Annual Assessment Revenue $87,500
Total Cost er Acre-Foot for Enlarged No. 4 Reservoir — 428 AF $3,742
Annual Pro'ect Cost er Acre for Enlar ement $162
Creditworthiness: The Company currently has no other outstanding debt. To-date, the CWCB
has disbursed $1,168,308 from the current loan authorization. Table 3 below shows the Financial
Ratios for the Company.
Table 3. Financial Ratios
Financial Ratio January 2007 Comp[eted Project
Enlargement 2009
Ratios
Operating Rario (revenues/expenses) 100% 100% „
(Average) (Average)
weak: <100% - avera e: 100% - 120°/a - stron :>120°/
(lOK/IOK) (IOK/IOK)
Debt Service Coverage Ratio
(revenues-expenses)/debt service 103% 100%
(Average) (Average)
weak: <100% - avera e: 100% - 120% - stron : >120°/ (75K-lOK/63K) (87K-IOK/77K
Cash Reserves to Current Expenses 5% 6%
weak: <50% - average: 50% - 100% - stron : >100°/ (Weak) (Weak)
(4K/75K (SK/87K
Annual Operating Cost per Acre-Ft. (800 AF) $115 $109
eak: >$ 2 �average: $10 - $20 - stron : <$1 (Weak) (Weak)
75K/650) (87K/800
*Based on current delivery of 650 AF and a future delivery of 800 AF
Collateral: As security for this loan, the Company has pledged assessment revenues backed by a
rate covenant and annual financial reporting. In addition, the Shareholders have pledged 90% of
their individual Company stock certificates. This security exceeds compliance with CWCB
Financial Policy #5 (Collateral).