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<br /> <br />, <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />2 <br /> <br />TIIl6n Laterallne. <br />May 21-22, 2001 <br /> <br />'Table 2 is a summary of the financial aspects of the project. A CWCS Loan of $100,000 would <br />have an annual payment of $5,981 (including the 10% reserve requirement) at the agricultural <br />terms of 3.5% for 30 years. This represents $6.23 per acre-foot, based on average annual <br />diversions of 960 acre-feet. <br /> <br />Agenda Item 70. <br /> <br />Table 2. Financial Summary <br /> <br />Pro'ect Cost <br />Number of Shareholders <br />Number of Shares of GVIC Stock <br />CWCS Loan Amount <br />CWCS Loan Pa ment includes 10% reserve <br />Added Assessments er share Tilton and GVIC * <br />Annual Loan Cost er acre-foot Avera e diversions: 960 acre-feeV r. <br /> <br />$153700 <br />36 <br />230 <br />$100,000 <br />$5 981 <br />$0.00 <br />$6.23 <br /> <br />(* TLI will be the single share holder for the 230 shares under the GVIC, so that there will be <br />only one "N share at $157.95 and 229 "8" shares at $6.94. Previously each shareholder was <br />assessed one "A" share, with the remaining shares assessed at the "8" rate. The resulting <br />reduction in GVIC assessments, along with the reduced cost to maintain the new system, <br />offsets the annual cost of the CWCS loan.) <br /> <br />Credit worthiness: TLI has no existing debt. Table 3 shows the Financial Ratios for TLI and <br />indicates average to strong ability to repay the $100K CWCS loan with the project in place. <br /> <br />Table 3. Financial Ratios <br /> <br />Financial Ratio <br /> <br />Without <br />the rO'ect <br />111% <br />(average) <br /> <br />With <br />the ro ect <br />107% <br />(average) <br /> <br />Operating Ratio (revenue/expense) <br />weak: less than 100% <br />average: 100% - 120% <br />stron : reater than 120% <br />Debit Service Coverage Ratio <br />(revenues-expenses )/debt service <br />weak, ress than 100% <br />average: 100% - 125% <br />stron : reater than 125% <br />Cash Reserves to Current Expense <br />weak: lass then 50% <br />average: 50% - 100% <br />stron : reater than 100% <br />Annual Cost per Acre-Foot <br />weak: greater than $20 <br />average: $10 - $20 <br />stron : less than $10 <br /> <br />No debt <br />(strong) <br /> <br />111% <br />(average) <br /> <br />499% <br />(strong) <br /> <br />116% <br />(strong) <br /> <br />$ 16.17 <br />(average) <br /> <br />$14.87 <br />(average) <br /> <br />As security for the loan the TLI will pledge assessment revenues backed by assessment <br />covenant and one payment in a certificate of deposit account to be held by the State. This <br />security is in compliance with CWCS Loan Policy #5 (Collateral). <br /> <br />3 <br />