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Lower Poudre Augmentation Company Agenda Item 22b <br /> September 15-17, 2015 Board Meeting(Updated September 18, 2015) <br /> Page 4 of 4 <br /> TABLE 3: FINANCIAL SUMMARY <br /> Total Project Cost $500,000 <br /> Borrowers Contribution (10%) $50,000 <br /> CWCB Loan Amount (90%) $450,000 <br /> CWCB Loan Amount (Including 1% Service Fee) $454,500 <br /> CWCB Annual Loan Payment $19,877 <br /> CWCB Annual Loan Obligation (1st Ten Years) $21,865 <br /> Decreed Flowrate of Augmented Wells 41,062.6 GPM <br /> Annual Loan Obligation per Decreed Flow Rate $0.53/GPM <br /> Current Assessment per Decreed Flow Rate $1.75/GPM <br /> Future Assessment per Decreed Flow Rate $2.28/GPM <br /> Cost of Project per AF of Augmentation Water (88 AF) $5,682/AF <br /> Creditworthiness: The Company has $4,473,927 in existing debt as summarized in Table 4. CWCB Loan <br /> C150245 was for the purchase of the Harmony 25 Reservoir (aka Timnath Flatiron Reservoir) and 4.5 <br /> Shares of the Box Elder Ditch Company. CWCB Loan CT2015-171 was for the purchase of the Cornish <br /> Water Rights. These loans are in good standing. <br /> TABLE 4: EXISTING DEBT <br /> Lender Original Current Annual Maturity Collateral <br /> Balance Balance Payment Date <br /> CWCB Fee Revenues, Timnath Flatiron Reservoir, <br /> (C150245) $3,560,333 $3,310,912 $170,104 2041 4.5 Shares Box Elder Ditch Company, Box <br /> Elder Ditch carriage agreement. <br /> CWCB Assessment revenues, Cornish water rights <br /> (CT2015-171) $1,163,015 $1,163,015 $55,177 2045 (34.5 Shares Cache la Poudre Irrigating Co., <br /> 4.0 Shares Cache la Poudre Reservoir Co.) <br /> TABLE 5: FINANCIAL RATIOS <br /> Financial Ratio Past 3 Years Future <br /> w/Project <br /> Operating Ratio (revenues/expenses) 101% 101% <br /> weak: <100% - average: 100% - 120% - strong: >120% (Average) (Average) <br /> $567K/$564K $618K/$615K <br /> Debt Service Coverage Ratio 102% 101% <br /> (revenues-expenses)/debt service (Average) (Average) <br /> weak: <100% - average: 100% - 120% - strong: >120%I ($567K-$394K) ($618K-$368K) <br /> $170K $247K <br /> Cash Reserves to Current Expenses 1% 1% <br /> weak: <50% - average: 50% - 100% - strong: >100%I (Weak)2 (Weak)2 <br /> $4K/$564K $4K/$593K <br /> Included in the Financial Summary and Financial Ratios is a future reduction of$26,000 per year in expenses which <br /> represents the average cost to lease the now owned Cornish water rights. <br /> 2 Due to high oil and gas revenues, the Company is taxed as a "for profit"corporation and thus is intentionally setting <br /> assessments to generate as small an annual profit as practicable, resulting in little cash on hand. <br /> Collateral: Security for this loan will be a pledge of the Company's well augmentation fee assessment <br /> revenues backed by an assessment covenant, and the water shares purchased with the loan proceeds. <br /> This is in compliance with the CWCB Financial Policy#5 (Collateral). <br /> cc: Dale Trowbridge, General Manager, Lower Poudre Augmentation Company <br /> Susan Schneider/Jennifer Mete, Colorado Attorney General's Office <br /> Attachment: Water Project Loan Program - Project Data Sheet <br />