BOARD00336

• Board Meeting Date: 7/28/2003
• Description: CF Section - New Loans - Windsor Reservoir & Canal Company - Storage Recovery Project for Windsor Reservoir No. 8 and No. 8 Annex
• Board Meetings - Doc Type: Memo

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Windsor Reservoir & Company
Juiy 28-29 2003

Agenda Item 21 a

Table 1. Financial Summary

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$750,000
275
1000
$675,000
in 2004 $35,475
$400/$380'
$520/$500
Annual Loan Cost er acre-foot aver. annual delive : 620 ac-ft. $57.22

'Assessments for Larimer & Weld Ditch - $400 (881 Yo shares), and Greeley No.2 Ditch - $380
(118 Yo shares). In 2003 assessments were reduced to $150/$100 for the year, due to rental
of Tunnel Water shares to the City of Greeley for $725,000 in 2002.

Creditworthiness: The WRCC has 3 outstanding loans, The first is a 1991 loan (Douglas
Reservoir) for $761 ,000, with a remaining amount of $534,475 and an annual payment of $53,995
through 2016. The second is a 1994 loan (poudre Valley Canal) for $300,000, with a remaining
amount of $252,313 and an annual payment of $17,879 through 2024. The third is a 1996 loan
(Multiple Projects), originally for $2,357,000 but increased in May 2003 to $2,658,500. This is an
open loan with accrued construction interest of $53,057. When closed it will have a new annual
payment of $155,058. The outstanding balance for all existing loans is $3,445.288 and annual
payments on all three loans will be $226,943,

Table 2 shows the Financial Ratios for the WRCC, and indicates average to strong ability to repay .
the $675,000 CWCS loan.

Table 2. Financial Ratios

Financial Ratio Without With project
, the project' Future Year
. (Aver. 2001-02) 2004+
Operating Ratio (revenue/expense)
weak: less than 100% 118% 178%
average: 100% - 120% (aver.) (strong)
strena: areater than 120%
Debt Service Coverage Ratio
(revenues-expenses)/debt service 108% 112%
weak: less than 100% (aver.) (aver.)
average: 100% - 125%
strena: areater than 125%
Cash Reserves to Current Expense
weak: less than 50% 79% 55%
average: 50% - 100% (aver.) (aver.)
strena: areater than 100%
Annual Operating Cost per Acre-Ft. (30,200 AF)
weak: greater than $20 $17,62 $21.10
average: $10 - $20 (aver.) (weak)
strano: less than $10 ,

'Note: 2001-02 ratios do not include the current loan that has not yet been closed.

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