BOARD01011

• Board Meeting Date: 9/24/2001
• Description: CF Section - Consolidated Home Supply Ditch and Reservoir Company
• Board Meetings - Doc Type: Memo

Consolidated Home Supply Ditch and Reservoir Co.
September 24-25, 2001

Agenda Item 168.

Table 3. Financial Summary

Pro'ect Cost
Number of Shareholders
Number of Shares of Stock
CWCS Loan Amount
CWCS Loan Pa ment includes 10% reserve
Current Assessment er share
New Assessments er share
Anl'1ual Loan Cost acre-fooL mean reservoir slqra e: 7,522 Be-ft

$1,048,000
275
2001
$943,000
$56,399
$125
$153
.$1.5Q

Credit worthiness: The CHSDRC has an existing loan with the USDA Rural Development on
which all payments have been made as agreed. The outstanding loan balance is approximately
$350K. The CWCS would need parity with this loan, or the Company would need to pay it off.
Table 4 shows the Financial Ratios for the CHSDRC:and indicates that, with the exception of
cash reserves, average ability to repay the $943K CWCS loan with the project in place.

Table 4. Financial Ratios

Financial Ratio Without With
. the oroiect the oroiect
Operating Ratio (revenue/expense) ,104% 109%
weak: less than 100% (average) (average)
average: 100% - 120% .
strono: areaterthan 120% .
Debit Service Coverage Ratio 77% 100%
(revenues-expenses)/debt service (weak) (average)
weak: less than 100%
average: 100% - 125%
strona: areater than 125%
Cash Reserves to Current Expense :55% 17%
weak: less than 50% i(average) (weak)
average: 50% - 100%
strona: areater than 100%
Annual Cost per Acre-Foot (23,623 ac-ft) :$ 11.41 $13.80
weak: greater than $20 j (average) (average)
average: $10 . $20
strona: less than $10

As security for the loan the CHSDRC will pledge a~sessment revenues backed by assessment
covenant and the project itself. This security is in cpmpliance with CWCS Loan Policy #5
(Collateral).

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