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<br />n.."'..... AA........ a____._l_ ^_ <br /> <br />, <br /> <br />Grand Mesa Reservoir Co. <br />September 22-23, 2003 <br /> <br />Agenda Item 5b <br /> <br />, <br /> <br />Table 3 is a summary of the financial aspects of the project with a 20-year loan. Annual <br />assessments have recently been increased to $5 per share, and will need to be increased <br />further to $6.50 per share with a CWCB loan payment of $6,291 (including the 10% reserve <br />requirement.) This $1.50 assessment increase represents $1.70 per acre-foot, based on <br />average annual diversions of 1,000 acre-feet. <br /> <br />Table 3. Financial Summary (20-year loan) <br /> <br />Proiect Cost $100,000 <br />CWCB Loan (90% of Proiect Cost) $90,000 111 <br />CWCB Loan Pavment Amount, includino 10% 'loan reserve -$, <br />Number of Shareholders 16 <br />Number of Shares of Stock 1137 <br />Current Assessment oer Share $5 <br />Future Assessment oer Share $6.50 <br />Annual Loan Cost per acre-foot diverted $6,291 <br />(Averaae annual diversions: 1,000 acre-feet) . <br /> <br />to, 30 jll-F <br /> <br />Credit worthiness: GMRC has no debt. Table 2 sl;tows the Financial Ratios and indicates, with <br />the exception of cash reserves, average to strong ability to repay with the project in place. <br /> <br />Table 4. Financial Rat!os (20-year loan) <br /> <br />Financial Ratio <br /> <br />Without <br />the fO 'ect <br />568% <br />(strong) <br /> <br />With <br />The fo'ect <br />108% <br />(average) <br /> <br />Operating Ratio (revenue/expense) <br />weak: less than 100% <br />average: 100% - 120% <br />siron : reater than 120% <br />Debt Service Coverage Ratio <br />(revenues-expenses)/debt service <br />weak: less than 100% <br />average: 100% - 125% <br />stron : reater than 125% <br />Cash Reserves to Current Expense <br />weak: less than 50% <br />average: 50% - 100% <br />stron : reater than 100% <br />Annual Cost per Ac-Ft diverted (1,000 j <br />weak: greater than $20 <br />average: $10 - $20 <br />stron : less than 10 <br /> <br />No debt <br />(strong) <br /> <br />100% <br />(average) <br /> <br />1228% <br />(strong) <br /> <br />34% <br />(weak) <br /> <br />ac-tt) $1.00 <br />(strong) <br /> <br /> <br />(p, '7:;.. <br /> <br />As security for the loan the GMRC will pledge assessment revenues backed by assessment <br />covenant and other Company property (Reservoirs #1 and #9) adequate to assure repayment <br />of the loan. This security is in compliance with CWCB Loan Policy #5 (Collateral). <br /> <br />. <br /> <br />4 <br />