BOARD00063 (3) - Laserfiche WebLink

Home Browse Search

~ Tom Hill - McElroy Dam November 6, 2006 Page 4 of 4 Agenda Item 10d Table 2. Financial Ratios . Financial Ratio Without Project With Project 2007 Future Years Operating Ratio (revenues/expenses) 206%(Strong) 206%(Strong) 1 weak: <100% 1- I average: 100% - 120% 1- I s~rong: >120%1 $21 OK/1 02K $210K/102K Debt Service Coverage Ratio 62%(Weak) 49%(Weak) (revenues-expenses)/debt service r weak: <100% 1- I averaae: 100% - 120%1- I slronQ: >120%1 $108K/173K $108K/218K Cash Reserves to Current Expenses 18%(Weak) 12%(Weak) I weak: <50% , - I average: 50% - 100% ~ -I strong: >100%' $18K/102K $18K/147K Annual Operating Cost per Acre-Ft Delivered* $425(N/A) $612(N/A) ~eak: >$20 I-I average: $10 - $20 I-I strong: <$101 $102K/240 $147K/240 * Calculation based on Ranch operations and is not a valid representation of the cost to deliver water Collateral: Security for the CWCB loan will be a security interest in 207 acres of the Ranch along a county maintained road valued at $5,314/acre or $1,100,000. Financial Policy #5 requires the appraised value to exceed 110% of the loan amount. In the event the appraisal indicates a value less than 110% of the loan amount the Hills will provide CWCB with a second position on the entire ranch which is currently on the market for $6.5 million. This security is a variation to CWCB Financial Polic:y #5 (Collateral). Staff Recommendation . Staff recommends the Board approve a loan not to exceed $862,540 ($854,000 for project costs and $8,540 for the 1% Loan Service Fee) to Tom Hill for engineering and construction costs associated with the McElroy Dam Rehabilitation Project, from the Severance Tax Trust Fund Perpetual Base Account. The terms of the loan shall be a 30-year loan at 2.5% per annum. Final approval of the loan shall bH conditioned upon all standard contracting provisions of the CWCB Loan Program. Security for the loan shall be collateral in compliance with CWCB Loan Policy #5 with the variance described below. Supplemental Loan Contract Conditions 1. Borrower shall provide a certified appraisal of the 207 acre land to be used as security for the loan. The appraisal shall indicate a value greater than 110% of the loan amount. If the appraisal indiccltes a value less than 110% and more than 90% of the loan amount, CWCB shall take a second lien on the entire Ranch. If the appraisal is less than 90% of the loan value, borrower must provide additional land as security to meet Policy #5 requirement. 2. The loan contract shall include an acceleration clause which requires the loan to be paid in full if the Hills sell any lands irrigated by the McElroy Reservoir. The subject lands are part of the Gore Pass Ranch and are described in general as: Township 2 North, Range 81 West of the 6th P.M. (1) Sec. 1 0: S~SE~; SE~SW~; SW~SW~ (2) Sec. 15: that portion of the N~ of Sec. 15 lying north of SH 134 (3) Sec. 16: that portion of the E ~NE~ of Sec. 16 lying east of County Rd. 17. Email copy: Tom & Linda Hill John Sikora, Project Engineer, URS Corporation Amy Stengel, AGO . Attachment: Water Project Construction Loan Program - Project Data Sheet