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Joseph W. Bowles Reservoir Company <br />May 12, 2009 (UPDATED May 22, 2009) <br />Page 6 of 6 <br />Agenda Item 17c <br />The Company has already raised 10% in cash ($187,400) from capital assessments that were <br />generated in anticipation of the Project. <br />TABLE 4 <br />FINANCIAL RATIOS <br /> Future <br />Financial RaNo Past 2 Years w/ Project <br />Operating Ratio (revenues/expenses) 102% 102% <br />weak: <100% - average: 100% - 120% - stron : >120°/ (Average) <br />$278K/272K (Average) <br />$395K/389K <br />Debt Service Coverage Ratio 105% <br />(revenues-expenses)/debt service No Existing (Average) <br />weak: <100% - avera e: 100% - 120% - stron :>120°/ Debt $395-272K/ <br /> 117K <br />Cash Reserves to Current Expenses 79% ~% <br />weak: <50% - average: 50% - 100% - stron : >100°/ (Average) (Weak) <br /> $215K/272K $28K/389K <br />Annual Operating Cost per Acre-Foot (900 AF) $169 $242 <br />eak: >$20 - avera e: $10 - $20 - stron : <$1 (Weak) (Weak) <br /> $152K/900 AF $218K/900 AF <br />Collateral: As security for the loan, the Company will pledge its assessment revenues backed <br />by a rate covenant and annual financial reporting. This is in compliance with CWCB Financial <br />Policy #5 (Collateral). <br />Staff Recommendation (Board approved staff recommendation on May 19, 2009) <br />Staff recommends the Board approve a loan not to exceed $1,703,870 ($1,687,000 for project <br />costs and $16,870 for the 1% Loan Service Fee) to the Joseph W. Bowles Reservoir Company to <br />construct its Bowles No. 1 Dam and Inlet Ditch Project from the Construction Fund. The loan <br />terms shall be 30 years at a blended interest rate of 4.65% per annum. Security for the loan shall <br />be in compliance with CWCB Financial Policy #5. <br />cc: Iudy Simonson, Secretary/Treasurer, Joseph W. Bowles Reservoir Company <br />James Ferentchak, P.E., W.W. Wheeler & Associates <br />Susan Schneider, AGO <br />Attachment: Project Data Sheet <br />