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WRCC, Inc. November 10, 2009 (UPDATED November 19, 2009) Page 5 of 5 TABLE 4 FINANCIAL SUMMARY Agenda Item 26a Past 2 Years Future Financial Ratio w/ Project Operating Ratio (revenues/expenses) 93% 100% weak: <100% - avera e: 100% - 120% - stron : >120°/ �Weak) (Average) $903K/966K $1.1M/1.1M Debt Service Coverage Ratio 100% (revenues-expenses)/debt service �� (Average) weak: <100% - avera e: 100% - 120% - stron :>120°/ ($1,106K-966K)/ 149K Cash Reserves to Current Expenses 518% 455% weak: <50% - avera e: 50% - 100°/a - stron : >100°/ (Strong) (Strong) $SM/966K $SM/1.1M Annual Operating Cost per Acre-Foot (based on 35,000 AF) $2g $31 � = , eak: >$20 - avera e: $10 - $20 - stron : <$1 (Weak) (Weak) $966K/35K $1.1M/35K *Note: Windsor Dam and Spillway Maintenance Project repayment will begin in December 2010, therefore that debt service does not show up in the past two year analysis but is included in the future year analysis. Collateral — As security for the loan, the Company will pledge assessment revenues. The pledge shall be backed by a rate covenant. In addition, the Company will pledge its storage rights in Cobb Lake as identified in Table 1. This is in compliance with CWCB Financial Policy #5 (Collateral). Staff Recommendation (Board approved staff recommendation on November 18, 2009) Staff recommends the Board approve a loan from the Construction Fund not to exceed $1,301,890 ($1,289,000 for project costs and $12,890 for the 1% Loan Service Fee) to WRCC, Inc. for engineering and construction costs related to the Cobb Lake Inlet Structure Project. The loan terms shall be 30 years at a blended rate of 2.85% per annum. Security for the loan shall be in compliance with CWCB Financial Policy #5. cc: Mayo Sommermeyer, the Dow Law Firm, LLC John W. Andrew, Ph. D., P.E., Andek Consulting, LLC Susan Schneider, AGO Attachment: Water Project Loan Program — Project Data Sheet