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Table 11.1 Financial Ratios Without the With the Financial Ratio Pro'ect Pro'ect Operating Ratio (RevenuesBxpenses) 127% 110% Weak: Less than 100% (strong) (average) Average: 100% to 120% Stron : Greater than 120% Debit Service Coverage Ratio 158% 113% (Revenues/Expenses)/Debt Service (strong) (average) Weak: Less than ]00% Average: 100% to 125% Stron : Greater than 125% Cash Reserves to Current Expense 62% 55% Weak: Less than 50% (average) (average) Average: 50% to 100% Stron : Greater than 100% Annual Cost Per Acre-Foot (926 AF) $9.01 $16,11 Weak: Greater than $20.00 (strong) (average) Average: $10.00 to $20.00 Stron : Less than $10.00 12.0 Collateral As security for the loan, the CMDRC will pledge assessment revenues backed by assessment covenant and the project itself. The CMDRC owns the Cedar Mesa Reservoir. Although the reservoir lies on Forest Service land, use was granted to CMDRC under the 1891 Department of the Interior Act. 13.0 Economic Analysis If the project is not completed, the cost to the CMDRC shareholders will be approximately $500,000 in water stock devaluation. This cost is associated with irrigation water that would have to be purchased from outside suppliers. This extra annual expense to the growers would impair their ability to operate gainful enterprises. 14.0 Social and Physical lmpacts The project will have no significant social impacts since it will allow continued use of the Cedar Mesa Reservoir in much the same way that it has been used over the course of the last 100 years. The projects will have some minor physical impacts in terms of surface dishubance on the dam during construction, and access traffic will increase for approximately one month during construction. Post-construction physical impact will be very minor. G9wpwork\1800s\1835A\CetlarMesaFeasibilityReporl.doc 7 Ju1y2001