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Ephraim Ditch Company Agenda Item 32c <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 $201,500 <br /> Additional Funding Sources <br /> NRCS Match(In-Kind) $15,000 <br /> District Match $10,500 <br /> Borrower Match $2,000 <br /> WSRA Grant(Pending CWCB Approval) $74,000 <br /> Total $101,500 <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 50,000 <br /> Total Project Cost per Acre Foot(4,100 AF) $49/AF <br /> Annual Cost of Loan Per Share (1St 10 Years) $0.10/share <br /> Current Assessment per Share $0.20/share <br /> Future Assessment per Share $0.33/share <br /> Loan funds will only be used on the Project's construction phase ($164,000)with a split of 61% loan <br /> funds to 39%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 /> w/Project <br /> Operating Ratio(revenues/expenses) 95% 100% <br /> weak: <100% - average: 100%- 120% - stron:: >120°/ (Weak) (Average) <br /> $30.2K/$31.9K $36.7K/$36.7K <br /> Debt Service Coverage Ratio 100% <br /> (revenues-expenses)/debt service N/A (Average) <br /> weak: <100%I- average: 100%- 120% - stron,: >120% ($36.7K-$31.9K) <br /> $4.8K <br /> Cash Reserves to Current Expenses 63% 50% <br /> weak: <50%I- average: 50%- 100%I- stron:: >100% (Average) (Average) <br /> $20.2K/$31.9K $18.2K/$36.7K <br /> Annual Operating Cost per Acre-Foot(4,100 AF) $7.80 $8.95 <br /> (Strong) (Strong) <br /> (weak: >$20I- .vera:e: $10- $20 stron:: <$1 I $31.9K/4.1K AF $36.7K/4.1K 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: Warren Crowther, President, Ephraim Ditch Company <br /> Susan Schneider/Jennifer Mele, Colorado Attorney General's Office <br /> Attachment: Water Project Loan Program—Project Data Sheet <br />