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<br />" <br /> <br />" <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />Silt Water Conservancy District <br />July 28-29, 2003 <br /> <br />Agenda Item 21 d. <br />(Updated August 4, 2003) <br /> <br />Financial Analvsis <br />The total estimated cost of the project is $1,133,000. Staff is recommending a Small Project Loan of <br />$1,019,700 (90 percent of the estimate cost.) The SWCD is an agricultural water provider and the <br />CWCB agricultural interest rate of 2.5% for a 30-year loan would apply. The CWCB loan payment <br />(including the 10% reserve requirement) would be $53,591 per year. The SWCD will fund their <br />portion out of cash reserves and will cover any costs that exceed the estimated project cost. The <br />District will increase its water share assessment as needed to provide sufficient revenues to cover <br />the CWCB loan payment. <br /> <br />Table 1 is a summary of the financial aspects of the project. Annual water assessments will increase <br />from $9 to $10 per share with a Construction Fund loan of $1 ,019,000. The CWCB loan payment <br />(and 10% reserve) of $53,591 represents a cost of $2.98 per acre-foot, based on average annual <br />total diversions of 18,000 acre-feet. <br /> <br />Table 1. Financial Summary <br />Proiect Cost $1,133,000 <br />CWCB Loan Amountl90% of Proiect Cost) $1,019,700 <br />CWCB Loan Pavment Amount, includina 10% loan reserve $53,591 <br />Number of Landowners 305 <br />Current Assessment ner water share $9.00 <br />Future Assessment ner water share $10.00 <br />Annual Project Cost per acre-foot $2.98 <br />IAveraoe annual total diversions: 18,000 acre-feen <br /> <br />Credit worthiness: The District has a 1963 repayment contract with the US Bureau of Reclamation. <br />The annual payment is $19,200 and the outstanding balance is approximately $350,000. The District <br />also has 2 existing CWCB loans, the first of which is in original amount of $100,000 with an annual <br />payment of $5,725, approved in January 2000. Payments on all outstanding loans have been made <br />as agreed, and the loans are current. The second CWCB loan is in amount of $486,000 with an <br />annual payment of $26,400, approved March 2003. The loan contract for that loan is in process. The <br />financial ratios for the SWCD are shown in Table 2, and indicate, with the exception of cash <br />reserves, average ability to repay with the new projects in place. <br /> <br />Table 2 Financial Ratios SWCD <br /> <br /> . <br />Financial Ratio Without With <br /> the oroiect The oroiect <br />Operating Ratio (revenue/expense) 128% 100% <br />weak; less than 100% (strong) (average) <br />average; 100% - 120% <br />stron';; nreater than 120% <br />Debt Service Coverage Ratio 180% 101% <br />(revenues-expenses)/debt service (strong) (average) <br />weak; less than 100% <br />average; 100% - 125% <br />stron';; nreater than 125% <br />Cash Reserves to Current Expense 110% 33% <br />weak; less than 50% (strong) (weak) <br />average; 50% - 100% <br />strona: a reater than 1 00% <br />Annual Cost per Ac-Ft (18,000 ac-ft delivered) $12.68 $16.72 <br />weak: greater than $20 (average) (average) <br />average; $10 - $20 <br />stronn; less than $10 <br /> <br />3 <br />