BOARD01162

• Board Meeting Date: 9/22/2003
• Description: CF Section - Board Meeting New Loans Arkansas Groundwater Users Association - Water Rights Purchase/Recharge Project
• Board Meetings - Doc Type: Memo

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AGUA - Water Rights Purchase/Recharge Projecl
Seplember 22-24. 2003

Agenda Item 50

Table 2. Financial Ratios

Financial Ratio Without With project
the project) Future Year
2001 2002 2004+
Operating Ratio (revenue/expense)
weak: less than 100% 81% 80% 120%
average: 100% - 120% (weak) (weak) (aver.)
stronn: oreater than 120%
Debt Service Coverage Ratio
(revenues-expenses)/debt service -183% -1387% 103%
weak: less than 100% (weak) (weak) (aver.)
average: 100% - 125%
stronn: nreater than 125%
Cash Reserves to Current Expense
weak: less than 50% 166% 235% 80-95%*
average: 50% - 100% (strong) (strong) (aver,)
strong: greater than 100%
Annual Operating Cost per Acre-Ft.
weak: greater than $20 (Depletions) $18 $23 $25 - 75*
average: $10 - $20
strong: less than $10

*Varies, assuming 14,000 to 9000 Acre-Ft. replacement at $12 to $60 per Acre-Ft.

Table 3 shows the required annual payments on AGUA's existing loans as well as the proposed
loan:

Table 3. CWCB Loan Summary*

Loan No. 2004 - 06 2006-33 2034-36
C153800 $3,082
C153678 $27,964 $27,964 $27,964
(Revised)
Excelsior Loan $46,366 $46,366
Totals $77,412 $74,330 . $ 27,964

*Does not include 10% reserve requirement.

Generally, AGUA will fulfill its annual CWCS loan obligation by assessing 1/3 against well
membership, and 2/3 against replacement water usage per acre-foot. For example, in 2004-2006,
the loan obligations will total $77,412. The loan charge per AF would vary depending on the total
amount of replacement water that AGUA is able to offer, as shown below:

Loan Fee per Well
Loan Charge per AF

$27,000 (450 wells x $60)
50.412 (14,000 AF x $3.60; 9000 AF x $5.60; 5000 AF x $10.08)
$77,412

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