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<br />Upper Platte and Beaver Canal Company <br />March 21,22, 2002 <br /> <br />Agenda Item 10, <br />(Updated March 22, 2002) <br /> <br />Table 1 is a summary of the financial aspects of the project. A CWCB Loan of $83,000 would <br />have an annual payment of $1 0,297 (including the 10% reserve requirement) at the loan terms <br />of 2,25% for 10 years, This represents $0,34 per acre-foot, based on average diversions of <br />30,000 acre-feet. <br /> <br />Table 1. Financial Summary <br /> <br /> <br />e diversions: 30,000 acre-feet. <br /> <br />$95,000 <br />100 <br />1187 <br />$83,000 <br />$10,297 <br />$65,00 <br />$73,50 <br />$0,34 <br /> <br />Credit worthiness: The UPBCC has no existing debt. Table 2 shows the Financial Ratios for <br />the UPBCC and indicates, with the exception of cash reserves, average to strong ability to <br />repay the $83K CWCB loan with the project in piace, <br /> <br />Table 4. Financial Ratios <br /> <br />Financial Ratio <br /> <br />Without <br />the 1'0 'ect <br />125% <br />(strong) <br /> <br />With <br />the ro'ect <br />123% <br />(average) <br /> <br />Operating Ratio (revenue/expense) <br />weak: less than 100% <br />average: 100% - 120% <br />stron : reater than 120% <br />Debit Service Coverage Ratio <br />(revenues-expenses )fdebt service <br />weak: less than 100% <br />average: 100% . 125% <br />stron : reater than 125% <br />Cash Reserves to Current Expense <br />weak: less than 50% <br />average: 50% - 100% <br />stron : reater than 100% <br />Annual Cost per Acre-Foot (30,000 AF) <br />weak: greater than $20 <br />average: $10 . $20 <br />stron : less than $10 <br /> <br />No debt <br />(strong) <br /> <br />210% <br />(strong) <br /> <br />4% <br />(weak) <br /> <br />4% <br />(weak) <br /> <br />$ 3,17 <br />(strong) <br /> <br />$3,50 <br />(strong) <br /> <br />As security for the loan the UPBCC will pledge assessment revenues backed by assessment <br />covenant and the project itself, This security is in compliance with CWCB Loan Policy No,5 <br />(Collateral), <br /> <br />Recommendation <br />Staff recommends that the CWeB find that the Upper Platte and Beaver Canal Company is <br />eligible for a loan from the Emergency Infrastructure Repair Account because: "the project is <br />necessary to avoid unreasonable risk of injury or damage to human health or well.being or to <br />property or crops, and because the emergency condition is not the result of negligence in the <br />operation or maintenance of the infrastructure," <br /> <br />3 <br />