C150266 Approval Letter - Laserfiche WebLink

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Granby Ditch & Reservoir Company Updated May 22, 2008 Page 4 of 5 Agenda Item 18 Table 1. Financial Summary PROJECT/LOAN Total Project Cost $280,000 CWCB Loan $252,000 CWCB Loan (Including 1 % Service Fee) $254,520 CWCB Annual Loan Payment $11,900 CWCB Loan Obligation (including 10% debt reserve funding) $13,100 Number of Shares 700 Annual Cost Per Share for Project $19.00 Annual Cost of Loan per AF (based on 259 AF recovered) $50.60 Assessments Current Future Assessments per share $18.00 $34.00 Creditworthiness: The Company's current assessment is $18/share, which will need to be increased to $34 /share to cover the debt service associated with the CWCB loan. (Note: Assessments were already increased from $ 15/share in 2006 - 2007 to $18/share for 2008 in anticipation of the Reservoir rehabilitation.) The rates will need to be increased further at the Company's annual shareholder meeting or at a special meeting to increase assessments. The Company has no existing debt. Table 2 shows the Financial Ratios for the Company's revenues. Table 2. Financial Ratios Past 2 Years Future Financial Ratio w/ Project Operating Ratio (revenues/expenses) 161% 159% I weak: <100% I-I average: 100% - 120% ~ -I strong: >120%1 (Strong) (Strong) $10.6/6.6K $1O.5/6.6K Debt Service Coverage Ratio 130% (revenues-expenses)/ debt service (N/A) (Strong) I weak: <100% I-I average: 100% - 120% I-I strong: >120%1 $23.6-6.6/13K Cash Reserves to Current Expenses 36% 12% I weak: <50% I-I average: 50% - 1 00% ~ - I strong: > 1 00%1 (Weak) (Weak) $23/6.6K $2.3/19.7K Annual Operating Cost per Acre-Foot (based on 2000 AF) $3.30 $9.85 lweak: >$20 I-I average: $10 - $20 I-I strong: <$101 (Strong) (Strong) $6.6K12000 $19.7K12000 Collateral - Security for the loan will be a pledge of revenues and the storage rights within Granby Reservoir #12. This is in compliance with CWCB Financial Policy #5 (Collateral).