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WRCC, Inc. <br />Updated September 19, 2008 <br />Page 6 of 6 <br />TABLE 4 <br />FINANCIAL SUMMARY <br />Agenda Item 23c <br /> Future <br />Financial Ratio Past 2 Years w/ Project <br />Operating Ratio (revenues/expenses) 102% 110% <br /> (Average) (Average) <br />weak: <100% - avera e: 100% - 120% - stron : >120°/ $842/822K $904/822K <br />Debt Service Coverage Ratio 120% <br />(revenues-expenses)/debt service (N/A) (Average) <br />weak: <100% - avera e: 100% - 120% - stron : >120°/ $904-822/68K <br />Cash Reserves to Current Expenses 626% 578% <br />weak: <50% - average: 50% - 100% - stron : >100°/ (Strong) <br />$S.1M/822K (Strong) <br />$S.1M/890K <br />Annual Operating Cost per Acre-Foot (based on 35,000 AF) $23 $25 <br />eak: >$20 - avera e: $10 - $20 - stron : <$1 (Weak) <br />$822K/35K (Weak) <br />$890K/35K <br /> <br />Collateral - As security for the loan, the Company will pledge assessment revenues. The pledge <br />shall be backed by a rate covenant. This is in compliance with CWCB Financial Policy #5 <br />(Collateral). <br />Staff Recommendation (Board approved Staff recommendation September 17, 2008) <br />Staff recommends the Board approve a loan not to exceed $1,285,730 ($1,273,000 for project costs <br />and $12,730 for the 1% Loan Service Fee) to WRCC, Inc. for the Windsor Dam and Spillway <br />Maintenance Project from the Severance Tax Trust Fund Perpetual Base Account. The terms of the <br />loan shall be a 30-year loan at a blended rate of 2.55% per annum. Security for the loan shall be in <br />compliance with CWCB Financial Policy #5. <br />Staff further recommends an additional contract condition requiring full payment of the Farmers <br />Bank bridge loan with proceeds from the CWCB funds. <br />cc: Mayo Sommermeyer, The Dow Law Firm, LLC <br />Amy Stengel, AGO <br />Susan Schneider, AGO <br />Attachment: Water Project Loan Program -Project Data Sheet <br />