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<br />"\, <br /> <br />Larimer and Weld Irrigation Co. <br />September 14-15. 2004 <br /> <br />Agenda Item 4e <br /> <br />Table 1 is a summary of the financial aspects of the project. A CWCS loan of $1 ,500,000 would <br />have an annual payment of $78,833 (including the 10% reserve requirement) at the loan terms of <br />2.50% for 30 years, <br /> <br />. <br /> <br />Table 1. Financial Summary <br /> <br />Proiect Cost $1,666,700 <br />Number of Shareholders 350 <br />Number of Shares of Stock 1419 <br />CWCS Loan Amount 130 vears) $1,500,000 <br />CWCS Loan Payment !includes 10% reserve) $78,833 <br />Current Assessment per share (2004) $230 <br />New Assessments per share (see note below) $280 <br />Annual Loan Cost per acre-foot (aver. annual deliverv: 90,000.ac-ft.) $0.87 <br /> <br />Note: The company assessments have been rising over the past few years in anticipation of the <br />repairs being made to the system. A recent history of annual assessments and proposed <br />assessments is as follows: <br /> <br />Past Assessments <br />2003 $215 <br />2004 $ 230 <br /> <br />Proposed Assessments <br />2005 to 2007 $240 to $290 <br />2008+ $280 <br /> <br />Creditworthiness: The LWIC has the one outstanding loan with CWCS approved in 2002, The . <br />loan balance is $1,000,000 with the first annual payment of $49,384 due in June 2005. <br /> <br />Table 2 shows the Financial Ratios for the LWIC and indicates, with the exception of cash reserves, <br />average to strong ability to repay the new $1,500,000 CWCS loan and the previous $1,000,000 <br />CWCS loan. <br /> <br />Table 2. Financial Ratios <br /> <br />Financial Ratio Without With project <br /> the project Future Year <br /> (Aver. 2002-03) <br />Operating Ratio (revenue/expense) <br />weak: less than 100% 113% 126% <br />average: 100% - 120% (aver,) (strong) <br />strano: oreater than 120% <br />Debt Service Coverage Ratio <br />(revenues-expenses)/debt service N/A* 101% <br />weak, less than 100% (aver,) <br />average: 100% - 125% <br />strano: oreaterthan 125% <br />Cash Reserves to Current Expense <br />weak: less than 50% 3% 11% <br />average: 50% - 100% (weak) (weak) <br />strano: oreater than 100% <br />Annual Operating Cost per Acre-Ft. (90,000 AF) <br />weak: greater than $20 $5.25 $6.92 <br />average: $10 - $20 (strong) (strong) <br />strano: less than $10 <br /> <br />. <br /> <br />*Not Applicable - no existing loans <br /> <br />Page 4 of 5 <br />