Laserfiche WebLink
<br />Low Line Ditch Company <br />March 24-26, 2003 <br /> <br />Agenda Item 25a <br />(Updated March 28, 2003) <br /> <br />Financial Analvsis <br />The total estimated cost of this added project is $72,500 (including engineering costs). Water is <br />used for agricultural purposes and the Staff is recommending an increase to the existing Small <br />Project loan in maximum amount of $65,250, such that the new loan amount would be <br />$159,750. The recommended loan terms would remain unchanged: 30 years at 2.75% or 20 <br />years at 2.5%. (The Company has requested loan terms of 20 years at 2.5%.) <br /> <br />Table 1 is a summary of the financial aspects of expanded project with a new CWCS loan <br />amount of $159,750. The annual payment would be $11,272 (including the 10% reserve <br />requirement) at the loan terms of 2.75% for 20 years. This represents $1.70 per acre-foot, <br />based on average annual diversions of 6,650 acre-feet. <br /> <br />Table 1. Financial Summary <br /> <br />New Total Cost $177,500 <br />Number of Shareholders . 14 <br />Number of Shares of Stock . 320 <br />New CWCS Loan Amount $159,750 <br />New CWCS Loan Pavment lincludes 10% reserve) $11,272 <br />Current assessment oer share $25 <br />New assessment per share $60 <br />Annual Loan Cost per acre-foot IAveraae diversians 6,650 ac-ft.\ $1.70 <br /> <br />Credit worthiness: The LLDC has no existing debt, other than the CWCS loan. Table 2 shaws <br />the Financial Ratios for the LLDC and indicates, with the exception of Cash Reserves, average <br />to strong ability to repay the new CWCS laan amount of $159,750. <br /> <br />Table 2. Financial Ratios <br /> <br />Financial Ratio Without With <br /> the Droiect The Droiect <br />Operating Ratio (revenue/expense) 110% 105% <br />weak: less than 100% (average) (average) <br />average: 100% - 120% <br />strona: areater than 120% <br />Debt Service Caverage Ratio Na Debt 109% <br />(revenues-expenses)/debt service (strong) (average) <br />weak: less than 100% <br />average: 100% - 125% <br />strona: areater than 125% <br />Cash Reserves to Current Expense 27% 14% <br />weak: less than 50% (weak) (weak) <br />average: 50% - 100% <br />strona: areater than 100% <br />Annual Cast per Ac-Ft (6,650 ac-ft diverted) $1.92 $3.61 <br />weak: greater than $20 (strong) (strang) <br />average: $10 - $20 <br />strona: less than $10 <br /> <br />As security for thelaan the LLDC will pledge assessment revenues backed by assessment <br />covenant and the project associated with this new larger loan amount. This security is in <br />compliance with CWCS Laan Policy #5 (Collateral). <br /> <br />3 <br />