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Duke Ditch Company Agenda item 13b <br /> March 16-17, 2016 Board Meeting(Updated March 18, 2016) <br /> Page 6 of 6 <br /> CWCB Loan Program <br /> Financial Analysis <br /> The Company qualifies for a blended interest rate of 2.00% for a 30-year term (Ownership: 68% <br /> Agricultural, and 32% Low-Income Municipal). Table 4 provides a summary of the Project's financial <br /> aspects. <br /> TABLE 4: FINANCIAL SUMMARY <br /> Total Project Cost $749,374 <br /> Grant and In-Kind $659,374 <br /> CWCB Loan Amount $90,000 <br /> CWCB Loan Amount (Including 1% Service Fee) $90,900 <br /> CWCB Annual Loan Payment $4,059 <br /> CWCB Annual Loan Obligation (15t Ten Years) $4,465 <br /> Number of Shares 80 <br /> Annual Loan Obligation per Share $56/share <br /> Current Assessment per Share $100/share <br /> Anticipated Future Assessment per Share $100/share <br /> The Company anticipates saving over $4,000 annually on Ditch cleaning operations as a result of the <br /> pipeline installation. These savings will offset the cost of the CWCB debt service; therefore, it does not <br /> anticipate the need to raise assessments for its shareholders. <br /> Creditworthiness: The Company has no existing debt. <br /> TABLE 5: FINANCIAL RATIOS <br /> Financial Ratio Past 3 Years Future <br /> w/Project <br /> Operating Ratio (revenues/expenses) 150% 137% <br /> weak: <100%1- average: 100% - 120%1- strong: >1201 (Strong) (Strong) <br /> $8.1 K/$5.4K $8.1K/$5.9K <br /> Debt Service Coverage Ratio 149% <br /> (revenues-expenses)/debt service N/A (Strong) <br /> weak: <100% - average: 100% - 120%I- strong: >120%I ($8.1K-$1.4K) <br /> $4.5K <br /> Cash Reserves to Current Expenses 174% 161% <br /> weak: <50%I- average: 50% - 100%1- strong: >100%I (Strong) (Strong) <br /> $9.4K/$5.4K $9.4K/$5.9K <br /> Annual Operating Cost per Acre-Foot (2,424 AF) $2.23 $2.44 <br /> tweak: >$201- average: $10 - $201- strong: <$10 (Strong) (Strong) <br /> $5.4K/2,424 AF $5.9K/2,424 AF <br /> Collateral: Security for this loan will be a pledge of assessment revenues backed by a rate covenant <br /> and the Project itself (the Duke Ditch pipeline). This is in compliance with the CWCB Financial Policy <br /> #5 (Collateral). <br /> cc: Marley Duclo, Duke Ditch Company <br /> Beth Karberg, Colorado Department of Agriculture <br /> Susan Schneider/Jennifer Mete, Colorado Attorney General's Office <br /> Attachment: Water Project Loan Program - Project Data Sheet Et WSRA Grant Application <br />