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Consolidated Home Supply Ditch 8 Reservoir Company Agenda Item 7a <br /> September 11-12,2014 Board Meeting(Updated September 12,2014) <br /> Page 4 of 4 <br /> Creditworthiness: The Company has two existing loans with a total of $484,358 in debt as summarized <br /> in Table 3. All existing loans are in good standing. Additionally, the Company was approved for a CWCB <br /> Emergency Loan (C150380) for flood repairs to its George Rist Ditch. That is an ongoing construction <br /> project and the financial analysis assumes a full disbursement will be made. <br /> TABLE 3: EXISTING DEBT <br /> Lender Original Current Annual Maturity Collateral <br /> Balance Balance Payment Date <br /> USDA Rural <br /> Development $650,000 $71,861 $27,157 12/10/2015 Assessments <br /> CWCB (C150082) $533,000 $412,497 $29,024 3/1/2034 Mariano Reservoir and <br /> Dam; Assessments <br /> CWCB (C150380) $519 140 Project $29 078 2044 George Rist Diversion a <br /> ' In-Progress Headgate; Assessments <br /> TABLE 4: FINANCIAL RATIOS <br /> Financial Ratio Past 3 Years Future <br /> w/Project* <br /> Operating Ratio (revenues/expenses) 101% 102% <br /> weak: <100%I- 'average: 100% - 120%1 'strong: >120% (Average) (Average) <br /> $328K/$324K $462K/$451K <br /> Debt Service Coverage Ratio 107% 106% <br /> (revenues-expenses)/debt service (Average) (Average) <br /> weak: <100%1 'average: 100%- 120%I- strong: >120%1 $328K $268K $462K $268K <br /> $56K $183K <br /> Cash Reserves to Current Expenses 59% 41% <br /> weak: <50% - 'average: 50% - 100% - 'strong: >100%1 (Average) (Weak) <br /> $191K/$324K $191K/$462K <br /> Annual Operating Cost per Acre-Foot (22,000 AF) $15 $21 <br /> 'weak: >$20 - 'average: $10 - $20 - 'strong: <$10 (Average) (Weak) <br /> $324K/22K AF $462K/22K AF <br /> *Assumes full disbursement of Emergency Loan C150380 and retirement of USDA Rural Development loan. <br /> Collateral: Security for the loan will remain a pledge of assessment revenues backed by rate covenant <br /> and the Project itself (Big Dam diversion and headgate). This is in compliance with the CWCB Financial <br /> Policy#5 (Collateral). <br /> cc: Minerva Lee, President, Consolidated Home Supply Ditch and Reservoir Company <br /> Susan Schneider/Jennifer Mete, Colorado Attorney General's Office <br /> Attachment: Water Project Loan Program - Project Data Sheet <br />