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Pisgah Reservoir and Ditch Company Agenda Item 12a <br /> July 15-16,2015 Board Meeting(Updated July 17,2015) <br /> Page 4 of 4 <br /> The original (2012) funding request was approved with ratios of 45% loan, 45% grant, and 10% <br /> borrower's contribution. These ratios will be maintained until the original budget of $362,690 is <br /> reached. Project cost in excess of $362,690 will be 100% covered by the loan, up to the approved loan <br /> limit. After all disbursements are made, the final loan amount will be approximately 85% of the Project <br /> cost. <br /> Creditworthiness: The Company has no other existing debt. In anticipation of this Project, the <br /> Company raised its assessments to $3 per share in 2011 and has successfully collected that amount <br /> each successive year. Assessments will not need to be raised above the current assessment of $3 per <br /> share in order to cover the future debt service and normal operating expenses. <br /> TABLE 3: FINANCIAL RATIOS <br /> Financial Ratio Past 2 Years Future <br /> w/Project <br /> Operating Ratio (revenues/expenses) 470% 103% <br /> weak: <100%1- average: 100% - 120%1- !strong: >120%I (Strong) (Average) <br /> $75K/$16K $75K/$73K <br /> Debt Service Coverage Ratio 104% <br /> (revenues-expenses)/debt service N/A (Average) <br /> weak: <100% - !average: 100% - 120% - Ftrong: >1201 $75K-$16K <br /> $57K <br /> Cash Reserves to Current Expenses 1225% 42% <br /> (Strong) (Weak) <br /> weak: <50%1- average: 50% - 100%1- strong: >100%1 <br /> $196K/$16K $31K/$73K <br /> Annual Operating Cost per Acre-Foot (860 AF) $19 $85 <br /> (Average) (Weak) <br /> !weak: >$20 I- average: $10 - $20 - !strong: <$10I <br /> $16K/860 AF $73K/860 AF <br /> Collateral: Security for the loan will change from a pledge of assessment revenues backed by an <br /> assessment covenant and the Project itself (slide gate and gate operator) to a pledge of assessment <br /> revenues backed by an assessment covenant and the Wrights Reservoir (aka Mount Pisgah Reservoir) <br /> and Mount Pisgah Dam including all associated appurtenances, rights-of-ways, easements, and the <br /> underlying parcel. This remains in compliance with the CWCB Financial Policy#5 (Collateral). <br /> cc: Wayne Whittaker, Secretary, 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 />