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<br />Lama Ditch and Lateral Company <br />September 11-12, 2002 <br /> <br />Agenda Item 12e <br /> <br />loan terms of 2.75% for 30 years. This represents an annual loan cost of $2.76 per acre-foot, <br />based on an average annual delivery of 3,505 acre-feet. <br /> <br />e <br /> <br />\ <br /> <br />Table 2. Financial Summary <br /> <br />Proiect Cost $278,041 <br />Number of Shareholders 81 <br />Number of Shares of Stock 790 <br />CWCB Loan Amount (30 years) $178,000 <br />CWCB Loan pavment (includes 10% reserve) - Beain 2003 $9,669 <br />Current Assessment oer share (2002) $10 <br />New Assessments oer share $13 <br />Annual Loan Cost oer acre-foot (aver. annual deliverv: 3505 ac-ft.) $2.76 <br /> <br />Creditworthiness: The LDLC has no existing long-term debt. The Company does owe $4300 from <br />the previous phase of construction that they are paying off as special assessment revenue is <br />received. (In 2002 LDLC has a base assessment of $10 per share but a total assessment of $33 <br />per share which includes a special assessment for their construction project.) They expect to have <br />the $4300 paid off by December 31,2002, as the Company has the authority to sell the stock of <br />delinquent shareholders who have not paid assessmEjlnts by December 1. <br /> <br />The CWCB loan will be repaid from increases in the base assessment rate from $10 to $13 per e <br />share. Table 2 shows the Financial Ratios for the LDLC and indicates, with the exception of cash <br />reserves, average to strong ability to repay the $178,000 loan. <br /> <br />Table 2. Financial Ratios <br /> <br />Financial Ratio Without With project <br /> . the project Future Years <br /> ( 2002) 2003+ <br />Operating Ratio (revenue/expense) <br />weak: less than 100% +120% +120% <br />average: 100% - 120% (strong) (strong) <br />strona: areater than 120% <br />Debit Service Coverage Ratio T <br />(revenues-expenses)/debt service N/A 103% <br />weak: less than 100% (aver.) <br />average: 100%.125% <br />strona: areater than 125% <br />Cash Reserves to Current Expense . <br />weak: less than 50% 38% 30% <br />average: 50% - 100% (weak) (weak) <br />strona: areater than 100% . <br />Annual Operating Cost per Acre-Ft. (3505 AF) <br />weak: greater than $20 $2.25 $2.93 <br />average: $10 . $20 (strong) (strong) <br />strona: less than $10 <br /> <br />e <br /> <br />Page 4 of6 <br />