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<br />.' <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />John Peroulis & Sons Partnership <br />September 24-25, 2001 <br /> <br />Agenda Item 16b. <br /> <br />Table 1 is a summary of the financial aspects of the project. A CWCB Small Project Loan of <br />$100K would have an annual payment of $5,981 (including the 10% reserve requirement) at <br />the loan terms of 3,5% for 30 years, This represents $23.92 per acre-foot, based on a reservoir <br />storage capacity of 250 acre-feet. <br /> <br />Table 1. Financial Summary <br /> <br />Pro'ect Cost <br />Number of Shareholders <br />Number of Shares of Stock <br />CWCS Loan Amount <br />WCB Loan Pa ment includes 10% reserve <br />Annual Loan Cost er acre-foot Reservoir volume: 250 ac-ft.) <br /> <br />$150,000 <br />1 <br />N/A <br />$100,000 <br />$5,981 <br />$23,92 <br /> <br />Credit worthiness: The JPSP has 2 existing loans with Lend Lease Agri-Business of <br />Englewood Colorado. The outstanding balance for these loans is $3.95 million, Loan approval <br />will be subject to an acceptable credit report from this lender. Table 2 shows the Financial <br />Ratios for the JPSP and indicates that 3 of the 4 ratios are in the weak category with the $100K <br />CWCB loan in place, Partnership income varies from year to year depending on the agricultural <br />market and one-time land purchase and sale events. <br /> <br />Table 2. Financial Ratios <br /> <br />Financial Ratio Without With <br /> The Dro/ect The project <br />Operating Ratio (revenue/expense) 200% 200% <br />weak: less than 100% (strong) (strong) <br />average: 100% - 120% <br />strona: areater than 120% <br />Debit Service Coverage Ratio 79% 77% <br />(revenues-expenses)/debt service (weak) (weak) <br />weak: less than 100% <br />average: 100% - 125% <br />strona: areater than 125% <br />Cash Reserves to Current Expense 35% 21% <br />weak: less than 50% (weak) (weak) <br />average: 50% - 100% <br />strona: areater than 100% <br />Annual Cost per Acre-Foot (250 ac-ft) $ 4.00 $24.00 <br />weak: greater than $20 (strong) (weak) <br />average: $10 - $20 <br />strona: less than $10 <br /> <br />As security for the loan the JPSP will pledge facilities, water rights, and/or other real property of <br />value equal to the loan amount, and which is unencumbered by existing debt. Because of the <br />variation in Partnership income stream, loan approval should also be subject to a lender title <br />policy verifying ownership of the security by the partnership, and an appraisal confirming the <br />value of property pledged. This security is in compliance with CWCB Loan Policy #5 <br />(Collateral). <br /> <br />3 <br />