BOARD01274

• Board Meeting Date: 1/22/2003
• Description: CF Section - South Side Reservoir Company
• Board Meetings - Doc Type: Memo

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South Side Reservoir Company
January 22-23, 2003

Agenda Item 1ge

Table 1: SSRC Share Ownership and Blended Interest Rate

Shareholder
Farmers/Ranchers
Loveland, City

Year 2002 Rate
2.75%
4.25%

% Shares
74
26

Totals

Blended rate for SSDC

100

Rate x %Shares
2.035
1.105

3.14

3.1%
(Rounded down to
nearest .1%

Table 2 is a summary of the financial aspects of the project with a $360,000 CWCB Loan. The
annual payment would be $20,466 (including the 10% reserve requirement) at the loan terms of
3.1 % for 30 years. This represents $16.49 per acre-foot, based on total annual storage (fill and
refill) of 1 ,241 acre-feet.

Table 2. Financial Summary

Pro'ect Cost
Number of Shareholders
Number of Shares of Stock
CWCB Loan Amount
CWCS Loan Pa ment includes 10% reserve
Current assessment er share
New assessment er share
Annual Loan Cost er acre-foot Total annual stora e 1241 ac-ft.)

$400,000
90
265
$360,000
$20,466
$20
$97
$16.49

Credit worthiness: The SSRC has no existing debt. Table 3 shows the Financial Ratios for the
SSRC and indicates 2 ratios in the average category and 2 in the weak category with the
$360,000 CWCB loan in place.

Table 3. Financial Ratios

Financial Ratio

Operating Ratio (revenue/expense)
weak: less than 100%
average: 100% -120%
stron : reater than 120%
Debit Service Coverage Ratio
(revenues-expenses)/debt service
weak: less than 100%
average: 100% -125%
stron : reater than 125%
Cash Reserves to Current Expense
weak: less than 50%
average: 50% - 100%
stron: reater than 100%
Annual Cost per Ac-Ft (898/1241 ac-ft stored)
weak: greater than $20
average: $10 - $20
stron : less than $10

Without
the ro 'ect
95%
. (weak)

No Debt
(strong)

170%
(Strong)

$6.23
(Strong)

3

With
The ro'ect
106%
(average)

110%
(average)

40%
(weak)

$20.99
(weak)