PROJ01753

• Contract/PO #: C150140
• Contractor Name: Toyne, Glenn
• Contract Type: Loan
• Water District: 1
• County: Sedgwick
• Loan Projects - Doc Type: Approval Letter

Glenn D. Toyne - Well Augmentation Project
March 25-26, 2003

Agenda Item 24d

Table 1. Financial Summary

$ 115,000
$75,600
$ 4,107
$1.17

Creditworthiness: As of February 6,2003, GDT lists assets totaling $1.2 million and liabilities of
$475,990, and outstanding loans for real estate totaling $306,050, and farm equipment, totaling
$61,150. Annual debt payment on these loans total is approximately $54,000.

Table 2 shows the Financial Ratios for the GDT and indicates, with the exception of cash reserves,
strong ability to repay the $75,600 CWCS loan.

Table 2. Financial Ratios

Financial Ratio Without With project
the project Future Years
Operating Ratio (revenue/expense)
weak: less than 100% 158% 154%
average: 100% - 120% (strong) (strong)
strano: areater than 120%
Debit Service Coverage Ratio
(revenues-expenses)/debt service 190% 167%
weak: less than 100% (strong) (strong)
average: 100% - 125%
strono: oreater than 125%
Cash Reserves to Current Expense
weak: less than 50% 15% 10%
average: 50% - 100% (weak) (weak)
strana: areater than 100%
Annual Operating Cost per Acre-Ft. (1100 ac-ft)
weak: greater than $20 $19.72 $ 20
average: $10 - $20 (aver.) (aver)
strana: less than $10

Collateral - As security for the loan the GDT will pledge a security interest in real estate, 160 acres
of farm ground located in NW % of Sec. 26, T11 N, R47W. The land consists of 127 acres flood
irrigated (2 wells) and 33 acres of dryland. The 127 acres of irrigated land is estimated to be worth
$1000 per acre, and at this Jevel proposed collateral would be sufficient to secure the $75,600 Joan.
During the contract process supporting documentation of land values, based on current land use,
will be submitted by a Colorado Certified General Appraiser. The collateral would be in compliance
with revised CWCS Loan Policy #5 (Collateral).

Recommendation

Staff recommends a CWCS Small Project Loan not to exceed $75,600 to Glen D. Toyne from the
Construction Fund to construct a system of wells and recharge pond to replace out-of-priority irrigation
well depletions. The recommended term of the loan is 30 years and the recommended lending rate is
2.75% per annum. Security for the loan will be agricultural real estate with a total collateral value of
$75,600. The real estate value will be supported by documentation from a Colorado Certified General
Appraiser, and all necessary permits and easements must be obtained.

Page 6 of 6