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Supply Irrigating Ditch Company Agenda Item 27b <br /> November 19-20,2014 Board Meeting(Updated November 21, 2014) <br /> Page 4 of 4 <br /> 2.25% with the principal amortized over 27 years (Ownership: 86%Agriculture, 5%Mid Municipal, 7% <br /> High Municipal, 2% Commercial). Staff is recommending an exemption to Financial Policy#11 to allow <br /> for 100% funding of eligible Project cost. <br /> TABLE 3: FINANCIAL SUMMARY <br /> Total Project Cost $321,000 <br /> CWCB Loan Amount $321,000 <br /> CWCB Loan Amount (Including 1% Service Fee) $324,210 <br /> CWCB Annual Loan Payment $16,153 <br /> CWCB Annual Loan Obligation (1st Ten Years) $17,768 <br /> Number of Shares 400 <br /> Annual Loan Obligation per Share $44 <br /> Current Assessment per Share $160/share <br /> Future Assessment per Share $160/share <br /> Creditworthiness: The Company has $69,660 in existing debt as summarized in Table 4. The Company <br /> was previously approved for CWCB loans in 2003 and 2008. Both loans were not contracted and were <br /> ultimately deauthorized as the respective projects did not move forward. <br /> TABLE 4: EXISTING DEBT <br /> Lender Original Current Annual Maturity Date Collateral <br /> Balance Balance Payment <br /> Guaranty Bank and July 2016 Deed of Trust (Ditch <br /> Trust Company $88,467 $69,660 $8,820 (w/ balloon payment) Rider Residence) <br /> TABLE 5: FINANCIAL RATIOS <br /> Financial Ratio Past 3 Years Future <br /> w/Project' <br /> Operating Ratio (revenues/expenses) 112% 105% <br /> weak: <100%1- average: 100% - 120% - strong: >120/ (Average) (Average) <br /> $139K/$124K $139K/$133K <br /> Debt Service Coverage Ratio 267% 133% <br /> (revenues-expenses)/debt service (Strong) (Strong) <br /> weak: <100% - average: 100% - 120% - strong: >120%$ ($139K-$115K) ($139K-$115K) <br /> $9K $18K <br /> Cash Reserves to Current Expenses 135% 79% <br /> weak: <50% - average: 50% - 100%i- strong: >100/ (Strong) (Average) <br /> $167K/$124K $110K/$140K <br /> Annual Operating Cost per Acre-Foot (4,650 AF) $27 $29 <br /> (weak: >$20 - average: $10 - $20 I- strong: <$1• (Weak) (Weak) <br /> $124K/4.7KAF $133K/4.7K AF <br /> 'Assumes payoff of the Guaranty Bank and Trust Company prior to the first CWCB loan payment <br /> Collateral: Security for this loan will be a pledge of the Company's assessment revenues backed by an <br /> assessment covenant, and the Project itself (diversion dam, headgate structure, and flume). This is in <br /> compliance with the CWCB Financial Policy#5 (Collateral). <br /> cc: Dan Grant, Secretary/Treasurer, Supply Irrigation Ditch Company <br /> Susan Schneider/Jennifer Mete, Colorado Attorney General's Office <br /> Attachment: Water Project Loan Program - Project Data Sheet <br />