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Sterling Irrigation Company Agenda Item 6a <br /> September 11-12, 2014 Board Meeting(Updated September 12, 2014) <br /> Page 4 of 4 <br /> Creditworthiness: The Company has $212,103 in existing debt as summarized in Table 4. The CWCB <br /> Loan was for the rehabilitation of the Company's diversion and headgate structure in 2000. That loan is <br /> in good standing. <br /> TABLE 4: EXISTING DEBT <br /> Lender Original Current Annual Maturity Collateral <br /> Balance Balance Payment Date <br /> CWCB (C150024) $318,583 $212,103 $17,869 2030 Assessment Revenues <br /> TABLE 5: FINANCIAL RATIOS <br /> Financial Ratio Past 3 Years Future <br /> w/Project <br /> Operating Ratio (revenues/expenses) 124% 123% <br /> weak: <100%I- I average: 100% - 120%1- strong: >120% (Strong) (Strong) <br /> $133K/$107K $146K/$119K <br /> Debt Service Coverage Ratio 244% 190% <br /> (revenues-expenses)/debt service (Strong) (Strong) <br /> weak: <100%I- I average: 100% - 120%I- strong: >1201 ($133K $89K) 1$146K $89K) <br /> $18K $30K <br /> Cash Reserves to Current Expenses 122% 91% <br /> weak: <50%I- average: 50% 100%I- strong: >100% (Strong) (Average) <br /> $131K/$107K $108K/$119K <br /> Annual Operating Cost per Acre-Foot (21,364 AF) $5.00 $5.60 <br /> (weak: >$20 I- average: $10 $20 I- strong: <$10l (Strong) (Strong) <br /> $107K/21.3KAF $119K/21.3K AF <br /> Collateral: Security for this loan will be a pledge of the Company's assessment revenues backed by an <br /> assessment covenant, and the diversion and headgate structure. This is in compliance with the CWCB <br /> Financial Policy#5 (Collateral). <br /> cc: Katherine Seetch, Secretary/Treasurer, Sterling Irrigation Company <br /> Susan Schneider/Jennifer Mete, Colorado Attorney General's Office <br /> Attachment: Water Project Loan Program - Project Data Sheet <br />