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Pisgah Reservoir and Ditch Company Agenda Item 28a <br /> November 19-20, 2014 Board Meeting(Updated November 21, 2014) <br /> Page 3 of 3 <br /> TABLE 2: FINANCIAL SUMMARY <br /> Original Approval Current Request <br /> Total Project Cost $362,690 $745,000 <br /> Borrower's Contribution $40,000 $40,000 <br /> WSRA Grant <br /> Arkansas River Basin $25,000 $25,000 <br /> Statewide $136,345 $136,345 <br /> TOTAL WSRA GRANT $161,345 $161,345 <br /> CWCB Loan Amount $161,345 $543,655 <br /> CWCB Loan Amount (Including 1% Service Fee) $162,958 $549,091 <br /> CWCB Annual Loan Payment $7,028 $23,682 <br /> CWCB Loan Obligation (Including 10% Reserve) $7,731 $26,050 <br /> Number of Shares 25,000 25,000 <br /> Annual Cost Per Share for Loan $0.31/share $1.04/share <br /> Current Assessment per Share $3/share <br /> Future Assessment per Share $3/share $3/share <br /> Cost of Project per AF to Preserve Storage (2,192 AF) _ $165/AF $340/AF <br /> The original funding request was approved with ratios of 44.5% loan, 44.5% grant, and 11% borrower's <br /> contribution. These ratios will be maintained until the original budget of$362,690 is reached. Project <br /> cost in excess of$362,690 will be 100% covered by the loan, up to the approved loan limit. <br /> Creditworthiness: The Company has no existing debt. In anticipation of this Project, assessments were <br /> already raised from $2 per share to $3 per share in 2012. <br /> TABLE 3: FINANCIAL RATIOS <br /> Financial Ratio Past 2 Years Future <br /> w/Project <br /> Operating Ratio (revenues/expenses) 160% 102% <br /> weak: <100%I- average: 100% - 120%I- 'strong: >120%1 (Strong) (Average) <br /> $75K/$47K $75K/$73K <br /> Debt Service Coverage Ratio 108% <br /> (revenues-expenses)/debt service N/A (Average) <br /> weak: <100% - average: 100% - 120%I- strong: >120% $75K-$47K <br /> $26K <br /> Cash Reserves to Current Expenses 417% 214% <br /> weak: <50% - average: 50% - 100% - strong: >100%1 (Strong) (Strong) <br /> $196K/$47K $156K/$73K <br /> Annual Operating Cost per Acre-Foot (86,000 AF) $0.55 $0.85 <br /> 'weak: >$20 I- average: $10 - $20I- strong: <$10 (Strong) (Strong) <br /> $47K/86K AF $73K/86K AF <br /> Collateral: Security for the loan will remain a pledge of assessment revenues backed by rate covenant <br /> and the Project itself (slide gate and gate operator). This is in compliance with the CWCB Financial <br /> Policy#5 (Collateral). <br /> cc: Wayne Whittaker, President, Pisgah Reservoir and Ditch Company <br /> Susan Schneider/Jennifer Mete, Colorado Attorney General's Office <br /> Attachment: Water Project Loan Program - Project Data Sheet <br />