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<br />" <br /> <br />i <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />Woodcl1uck Ditcl1 Co. <br />March 20-21, 2000 Agenda Item 10a. <br /> <br />Financial Analvsis <br />The total estimated cost of the project is $ 150,000, with funding sources shown in Table 2. <br /> <br />Table 2. Sources of Funding for Construction <br /> <br />Entity Grant Loan Percent Participation <br />NRCS/CFSA $70,000 $0 47% <br />UYWCD $40,000 $0 27% <br />CWCB (Permanent Loan) $0 $40,000 <br /> 27% - <br />Totals $110,000 $40,000 $150,000 <br /> <br />Table 3 is a summary of the financial aspects of the project. Annual assessments of $4.29 win <br />be needed to repay a CWCB Emergency Loan of $40,000. (The annual payment plus 10% <br />reserve is $3,166.) This represents $3.25 per acre-foot, based on expected future average <br />diversions 975 acre-feet. Total assessments per share will actually reduce to approximately $15 <br />per share with the project, because of an estimated $10,000 annual saving in repair and <br />maintenance expenses. <br /> <br />Water is used by the shareholders for agricultural purposes. The WDC would qualify for the <br />CWCB Agricultural Lending rate. The Company is requesting a 20-year loan at 3.75%. The <br />WDC has no existing debt. <br /> <br />As security for the loan the WDC will pledge assessment revenues backed by assessment <br />covenant, one payment in a certificate of deposit account to be held by the State, and the <br />project itself. <br /> <br />Table 3. Financial Summary <br /> <br />Project Cost $150,000 <br />CWCB Loan Amount (27% of Project Cost) $ 40,000 <br />CWCB Loan Payment, including 10% loan reserve $3,166 <br />Number of Shareholders 13 <br />Number of Shares of Stock 738.5 <br />Current Average Assessment per Share (1997-1999) $23 <br />Future Average Assessment per Share $15 <br />Annual Project Cost per acre-foot: <br />Based on average diversions for the last 10 years: 474 acre-feet: $6.67 <br />Based on average diversions expected in future: 975 acre-feet: $3.25 <br /> <br />Table 4. Financial Ratios <br /> <br />Financial Ratio Without the project With the project <br />Operating Ratio (revenue/expense) 98% (weak) 105% (average) <br />Debit Service Coverage Ratio No debt (strong) 115% (average) <br />(revenues-expenses)/debt service <br />Cash Reserves to Current Expense 3% (weak) 19% (weak) <br />Annual Cost per Acre-Foot $36 (weak) $11 (average) <br /> <br />3 <br />