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Wood Lake Mutual Water and Irrigation Company <br />January 23-24, 2007 <br />Agenda Item 9g <br />Creditworthiness: WLIC has one existing loan with CWCB with a contract date of 1997. The <br />original loan was for $458,000 for the purpose of rehabilitating the Wood Lake dam. The <br />remaining principal amount on the loan is $401,886 with an annual payment of $25,688 through <br />2030. WLIC is current on their CWCB loan obligation. Two Certificates of Deposit (CD's) were <br />established and assigned to CWCB as part of the collateral for this loan, in the total required <br />amount of $25,688. The balance of these CD's in 2006 was $36,832, providing a differential of <br />$11,144 which will be used to satisfy the reserve requirement for the new loan. <br />Table 2 shows the Financial Ratios and indicates overall average ability to repay the $210,600 <br />CWCB loan, with the increased assessments. <br />Table 2. Financial Ratios <br />Financial Ratio Without With project <br />the project Future Year <br />Aver. 2004-05 2008+ <br />Operating Ratio (revenue/expense) <br />weak: less than 100% 109% 102% <br />average: 100° - �20°�0 (aver.) (aver.) <br />strong: greater than 120% <br />47K/43K 39K/38K <br />Debt Service Coverage Ratio <br />(revenues-expenses)/debt service 128% 105% <br />weak: less than 100% (strong) (aver.) <br />average: 100% - 125% <br />strong: greater than 125% 75K-43K/26K 76K-38K/36K <br />Cash Reserves to Current Expense <br />weak: less than 50% 28%�` 16%* <br />average: 50% - 100°/a (weak) (weak) <br />strong: greater than 100% <br />19K/68K 12K/74K <br />Annual Operating Cost per Acre-Ft. (6,700 AF) <br />weak: greater than $20 $10.20 $11.00 <br />average: $10 - $20 (aver.) (aver.) <br />strong: less than $10 <br />(68K/7K) (74K/7K)) <br />* Value does not include two CD's totaling $36,832. <br />4of5 <br />Table 1. Financial Summary <br />