C150242 Feasibility Study

• Contract/PO #: C150242
• Contractor Name: Seven Lakes Reservoir Company
• Contract Type: Loan
• Water District: 0
• County: Larimer
• County: Weld
• Loan Projects - Doc Type: Feasibility Study

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Table VI-6
Financial Summary

Project Cost $850,210
Number of Shareholders i 63
Number of Shares of Stock 400
CWCS Loan Amount i $772,840
CWCS Loan Payment (includes 10% reserve) ! 642,258
Current assessment per share ! $175
New assessment per share $281
Annual Loan Cost per acre-foot (Total annual storaQe 8,796 ac-ft.) ~12.78

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Credit worthiness: The SLRC has no existing debt other than a principal
amount of 52,119 owed to GLlC to be paid off by March 31, 2008, prior to the
commencement of debt service for the proposed CWCB Loan. The existing
outstanding principal amount of 52,119 is the remainder of a 10-year loan to
offset GlIC's cost of a 1998 feasibility study. Table VI-7 shows the Financial
Ratios for the SLRC and indicates an average ability to repay with the project in
place.

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Table VI-7
Financial Ratios

Financial Ratio i Without With
The project The project
Operating Ratio (revenue/expense) i 77% 100%
weak: less than 100% i (Weak) (Average)
average: 100% - 1207~ !
strong: greater than 120% !
Debit Service Coverage Ratio I No Debt concurrent 110%
(revenues-expenses)/debt service ! with future CWCS (Average)
weak: less than 100% ' Loan Payments
average: 100% - 125% . (Strong)
strong: greater than 125%
Cash Reserves to Current Expense 288% 100%
weak: less than 50"/:; (Strong) (Average)
average: 50% - 100%
strong: greater than 100%
Annual Cost per Ac-Ft (8796 ac-ft stored) 1$7.95 $12.78
weak: greater than 520 i (Strong) (Average)
average: $10- 520 I
strong: less than $10 i

As security for the loan the SLRC will pledge assessment revenues backed by
assessment covenant and the project itself. This security is in compliance with
CWCB Loan Policy #5 (Collateral). SLRC requests a CWCB Small Project Loan

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