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<br />'j <br /> <br />Seven Lakes Reservoir Company <br />January 23-24, 2007 <br /> <br />Agenda Item ge <br /> <br />. <br /> <br />Table 2. Financial Ratios <br /> <br />. <br /> <br />Financial Ratio Without With project <br /> the project Future Year <br /> (Aver. 2003-05) 2009+ <br />Operating Ratio (revenue/expense) <br />weak: less than 100% 96%* 142% <br />average: 100% - 120% (weak) (strong) <br />strong: greater than 120% <br /> (75K178K) ( 112K179K) <br />Debt Service Coverage Ratio <br />(revenues-expenses )/debt service 7,672% 102% <br />weak: less than 100% (strong) (aver.) <br />average: 100% - 125% <br />strong: greater than 125% (163K-78K/1K) (122K-79K/43K) <br />Cash Reserves to Current Expense <br />weak: less than 50% 407% 192% <br />average: 50% - 100% (strong) (strong) <br />strong: greater than 100% <br /> (328K179K) (234K/122K) <br />Annual Operating Cost per Acre-Ft. (9000 AF) <br />weak: greater than $20 $8.79 $13.52 <br />average: $10 - $20 (strong) (aver.) <br />strong: less than $10 <br /> (79K/9KJ (122K/9K) <br /> <br />* Other income besides operating assessments used to cover expenses. <br /> <br />Collateral- As security for the loan, the SLRC will pledge its annual assessment revenue <br />backed by an assessment covenant. This is in compliance with CWCB Loan Policy #5 <br />(Collateral). <br /> <br />Recommendation <br /> <br />Staff recommends that the Board approve a loan not to exceed $772,842 ($765,190 for project <br />costs and $7,652 for the 1 % Loan Service Fee in accordance with CWCB Loan Policy #16), to the <br />Seven Lakes Irrigation Company from the Severance Tax Trust Fund Perpetual Base Account, to <br />replace a deteriorating railroad crossing culvert over the north outlet canal (also known as Dry <br />Creek) from Lake Loveland. The recommended terms of the loan are 30 years at 2.95% per <br />annum. Security for the loan will be a pledge of assessment revenues backed by an assessment <br />covenant. <br /> <br />Staff further recommends that final approval of the loan be conditioned upon all other standard <br />contracting provisions of the CWCB. <br /> <br />cc: Vern Kammerzell, President, Seven Lakes Irrigation Company <br />John G. Gauthiere, P.E., Gauthiere Engineering, Inc. <br />Amy Stengel, AGO <br /> <br />. Attachment <br /> <br />50f5 <br />