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Sanford Canal Company Agenda Item 32b <br /> May 9,2014(Updated May 23,2014) <br /> Page 4 of 4 <br /> Financial Analysis <br /> Table 3 shows a summary of the Project's financial aspects. The term of the loan will be 30 years <br /> and the interest rate will be the agricultural rate of 1.75%. <br /> TABLE 3: PROJECT FINANCIAL SUMMARY <br /> Total Project Cost $213,000 <br /> Additional Funding Sources <br /> NRCS Match(In-Kind) $15,000 <br /> District Match $10,000 <br /> Borrower Match $2,000 <br /> WSRA Grant(Pending CWCB Approval) $86.000 <br /> Total $113,000 <br /> CWCB Loan $100,000 <br /> CWCB Loan(Including 1% Service Fee) $101,000 <br /> CWCB Annual Loan Payment $4,356 <br /> CWCB Annual Loan Obligation(incl. 10%debt reserve) $4,792 <br /> Number of Shares 50,054 <br /> Total Project Cost per Acre-Foot(4,000 AF) $53/AF <br /> Annual Cost of Loan Per Share $0.10/share <br /> Current Assessment per Share $0.20/share <br /> Future Assessment per Share $0.30/share <br /> Loan funds will only be used on the Project's construction phase ($176,000)with a split of 57% loan to <br /> 43% WSRA funds(pending grant approval). <br /> Creditworthiness: The Company has no existing debt. <br /> TABLE 4: FINANCIAL RATIOS <br /> Financial Ratio Past 3 Years Future <br /> wI Project <br /> Operating Ratio(revenues/expenses) 108% 108% <br /> weak: <100%I- average: 100%- 120%I- strop:: >120% (Average) (Average) <br /> $32.7K/$30.2K $37.7K/$35.0K <br /> Debt Service Coverage Ratio 156% <br /> (revenues-expenses)/debt service N/A (Strong) <br /> weak: <100%I- average: 100%- 120% - stroll!: >120% ($37.7K-$30.2K) <br /> $4.8K <br /> Cash Reserves to Current Expenses 33% 23% <br /> weak: <50%I- average: 50%- 100% - stron:: >100% (Weak) (Weak) <br /> $101030.2K $8K/$35K <br /> Annual Operating Cost per Acre-Foot(4,000 AF) $8 $9 <br /> weak: >$20I- .vera:e: $10- $20 - stron:: <$1 I (Strong) (Strong) <br /> $30.2K/4K AF $35/4K AF <br /> Collateral—Security for this loan will be a pledge of the Company's assessment revenues backed <br /> by an assessment covenant, and the Project itself(diversion, headgate, and measurement <br /> equipment). This security is in compliance with CWCB Loan Policy#5 (Collateral). <br /> cc: Marty Peterson, President, Sanford Canal Company <br /> Susan Schneider/Jennifer Mele, Colorado Attorney General's Office <br /> Attachment: Water Project Loan Program—Project Data Sheet <br />