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East Mesa Water Company Agenda Item 19c <br /> January 26-27,2015 Board Meeting(Updated January 28,2015) <br /> Page 3 of 3 <br /> Table 3. Financial Summary of Project <br /> PROJECT/LOAN <br /> Total Project Cost $810,000 <br /> WSRA Grant Funding $60,000 <br /> Initial CWCB Construction Loan Amount $750,000 <br /> Initial Loan Amount with 1%Service Fee $757,500 <br /> CWCB Annual Loan Payment (if no grant funds are received) $32,700 <br /> CWCB Loan Obligation (including 10%debt reserve funding) $36,000 <br /> Number of Shares 1000 <br /> Current Annual Assessment (per Share) $15/Share <br /> Annual Cost per share for loan repayment (if no grant funds are received) $36/Share <br /> Estimated cost per share for loan repayment (if all grant funds are received) $22/Share <br /> Total Cost of Project per AF Delivered (using 9,669AF) $84/AF <br /> Creditworthiness: The Company has no existing debt. <br /> Table 4 shows the Financial Ratios for the Company. <br /> Table 4. Financial Ratios <br /> Financial Ratio Past Years Future) <br /> Operating Ratio (revenues/expenses) 162% 119% <br /> weak: <100% - average: 100% - 120%I- stron•: >120'. (Strong) (Average) <br /> $15K/9.3K $37K/31K <br /> Debt Service Coverage Ratio 126% <br /> (revenues-expenses)/debt service N/A (Strong) <br /> weak: <100%I- average: 100% - 120% - strong: >120'. (No Debt) $37-9.3K/22K <br /> Cash Reserves to Current Expenses 5% 2% <br /> weak: <50% - average: 50% - 100%I- strong: >100'. (Weak) (Weak) <br /> $0.5K/9.3K $0.5K/31K <br /> Annual Operating Cost per Acre-Foot (9,669AF) $0.96/AF $3.20/AF <br /> (Strong) (Strong) <br /> (weak: >$201- average: $10 - $20 - strong: <$101 $9.3K/9,669AF $31K/9,669AF <br /> (1)Assumes$362,000 in grants funds are made available <br /> Collateral - Security for the loan shall remain as a pledge of the Company's assessment revenues <br /> backed by a rate covenant and the Project itself (the 48-inch installed pipeline and associated access <br /> rights). This is in compliance with CWCB Financial Policy#5 (Collateral). <br /> cc: Marty Nieslanik, President, East Mesa Water Company <br /> Susan Schneider/Jennifer Mete, Colorado Attorney General's Office <br /> Attachment: Water Project Loan Program - Project Data Sheet <br />