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Trinchera Irrigation Company <br />January 19, 2010 (UPDATED February 4, 2010) <br />Page 5 of 5 <br />TABLE 3 <br />FINANCIAL SUMMARY <br />Agenda Item 26b <br />Past 2 Years Future <br />Financial Ratio w/ Project <br />Operating Ratio (revenues/expenses) 115% 116% <br />weak: <100% - avera e: 100% - 120% - stron : >120°/ (Average) (Average) <br />$291K/253K $323K/279K <br />Debt Service Coverage Ratio 252% 183% <br />(revenues-expenses)/debt service (Strong) (Strong) <br />weak: <100% - avera e: 100% - 120% - stxon : >120°/ �$291K-228K)/ ($323K-228K)/ <br />25K 52K <br />Cash Reserves to Current Expenses 14% 21 % <br />weak: <50% - avera e: 50% - 100% - stron : >100°/ (Weak) (Weak) <br />$36K/253K $58K/279K <br />Annual Operating Cost per Acre-Foot (based on 26,700AF) $9.48 $10.45 <br />eak: >$20 - avera e: $10 - $20 - stron : <$1 (Strong) (Average) <br />$253K/26,700AF $279K/26,700AF <br />Collateral — As security for the loan, the Company will pledge assessment revenues backed by a <br />rate covenant and the water rights stored in Smith Reservoir and Smith Reservoir. This is in <br />compliance with the CWCB Financial Policy #5 (Collateral). <br />Staff Recommendation (Board approved staff recommendation on January 27, 2010) <br />Staff recommends the Board approve a loan from the Construction Fund not to exceed $606,000 <br />($600,000 for project costs and $6,000 for the 1% Loan Service Fee) to the Trinchera Irrigation <br />Company for engineering and construction costs related to the Smith Dam Repair Project. The loan <br />terms shall be 30 years at the agricultural rate of 2.75% per annum. Security for the loan shall be in <br />compliance with CWCB Financial Policy #5. <br />Staff also recommends a contract condition requiring that all bridge financing be paid in full with <br />the proceeds from the CWCB loan. <br />cc: Jane Devine, Office Manager, Trinchera Irrigation Company <br />Susan Schneider, AGO <br />Attachment: Water Project Loan Program — Project Data Sheet <br />