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Ish Reservoir Company <br />October 18, 2013 (Updated October 21, 2013) <br />Page 4 of 4 <br />Agenda Item 8g <br />Schedule: Debris removal has already begun. Construction of the Project is expected to occur <br />between October of 2013 and March of 2014. <br />Financial Analysis <br />Table 3 provides a summary of the Project's financial aspects. The first three years of the loan will <br />be assessed a 0% interest rate. The remaining term of the loan will be assessed the agricultural <br />interest rate of 1.75% with the principal amortized over 27- years. Staff is recommending an <br />exemption to Financial Policy 411 to allow for 100% funding of eligible Project costs. <br />TABLE 3: FINANCIAL SUMMARY <br />CWCB Loan Amount (100% of Company's Project cost) <br />$205,000 <br />CWCB Loan Amount (Including 1% Service Fee) <br />$207,050 <br />CWCB Annual Loan Payment <br />$9,688 <br />CWCB Loan Obligation (Includin 10% Reserve) <br />$10,657 <br />Number of Shares <br />600 <br />Annual Cost Per Share for Loan (with Reserve Account) <br />$18 <br />Current Assessment per Share <br />$90 <br />Future Assessment per Share <br />$108 <br />Creditworthiness: The Company has no existing debt. <br />TABLE 4: FINANCIAL RATIOS <br />Financial Ratio <br />Past 2 Years <br />Future <br />w/ Project <br />Operating Ratio (revenues /expenses) <br />135% <br />132% <br />(Strong) <br />(Strong) <br />weak: <I 00%1 vera e: 100% - 120% stron : >120% <br />$96K/$71K <br />$109K/$82K <br />Debt Service Coverage Ratio <br />N/A <br />345% <br />(revenues- expenses) /debt service <br />(no existing <br />(Strong) <br />weak: <100% vera e: 100% - 120% t Istrong: > 120% <br />debt) <br />$109K -71 K <br />$11K <br />Cash Reserves to Current Expenses <br />70% <br />61% <br />(Average) <br />(Average) <br />weak: <50% t vera e: 50% - 100% stron : > 100% <br />$50K/$71K <br />$50K/$82K <br />Annual Operating Cost per Acre -Foot (4,500 AF) <br />$15.78 <br />$18.22 <br />eak: >$20 vera e: $12.- $20 stron : <$1 <br />(Average) <br />(Average) <br />4.5K AF <br />$71K/4.5 AF <br />$82K/ <br />Collateral: As security for the loan, the Company will pledge its assessment revenues backed by a <br />rate covenant and the Company's interest in Ish Reservoir. This is in compliance with the CWCB <br />Financial Policy #5 (Collateral). <br />cc: Jill Baty, Board Secretary, Ish Reservoir Company <br />Susan Schneider /Jennifer Mele, Colorado's Attorney General Office <br />Attachment: Water Project Loan Program — Project Data Sheet <br />