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• ' Creditworthiness: <br /> The Company's current assessment is $19 per share with a$100 minimum. The Company's <br /> assessments will be increased to $76 per share to cover the debt services associated with the <br /> CWCB loan increase. The Company will have a special assessment of$23 per share in 2010 to <br /> cover the Company's required 10%match. <br /> The financial ratios for the Company are shown in Table 3 below. <br /> Table 3. Financial Ratios <br /> Financial Ratio Past 3 Years With project <br /> Future Year <br /> 2010+ <br /> Operating Ratio(revenues/expenses) 108% 100% <br /> weak:<100% - average: 100%- 120% - stront:>120% (Average) (Average) <br /> $305k/282k 451k/451k <br /> Debt Service Coverage Ratio 330% 100% <br /> (revenues-expenses)/debt service (Strong) (Average) <br /> weak:<100% - average: 100%- 120%I- strong:>120% 305k-272k/10k 451k-272k/179k <br /> Cash Reserves to Current Expenses 17% 11% <br /> weak:<50% - average: 50%- 100%``- strong:>100% (Weak82 (Weak) <br /> 48k/282k (48k/451k) <br /> Annual Operating Cost per Acre-Ft.(12,000 AF)* $24 $38 <br /> (weak:>$201- average:$10-$20 - stron l:<$11 (Weak) (Weak) <br /> *total water delivered by the system. 282k/12k AF (451k/12k) <br /> Collateral: As security for the loan, the Company will be a pledge its assessment revenues and <br /> a '/4 interest in Panama Reservoir. Assuming a capital investment of $3.1M to improve the <br /> reservoir, and a$3,000 per AF value for the water (4,200 AF active pool), the estimated value of <br /> a 1/4 interest in the reservoir would be approximately $3,925,000. This is in compliance with <br /> WCB Financial Policy#5 (Collateral). <br /> Recommendation <br /> Staff recommends that the Board approve an increase of$434,104($429,806 for project costs and <br /> $4,298 for a 1% Loan Service Fee)to the Company from the Severance Tax Trust Fund <br /> Perpetual Base Account, at its current interest rate of 3.45% for 30 years. The Company's total <br /> amended loan amount will be$2,864,164 ($2,835,806 for project costs and $28,358 for a 1% <br /> Loan Service Fee) for the Panama Reservoir Outlet Project. Security for the loan shall be <br /> collateral in compliance with CWCB Loan Policy No. 5. <br /> c: Dan Grant,Secretary—Supply Irrigating Ditch Company <br /> Susan Schneider,AGO <br /> 4 <br />