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South Side Irrigation Company Agenda Item 19d <br />January 22-23, 2003 Updated January 24, 2003 <br />Table 2. Financial Sum <br />Pro'ect Cost $80,000 <br />Number of Shareholders 90 <br />Number of Shares of Stock 265 <br />CWCB Loan Amount $72,000 <br />CWCB Loan Pa ment includes 10% reserve $4,093 <br />Current assessment er share $90 <br />New assessment er share $109 <br />Annual Loan Cost er acre-foot Avera e diversions 1,590 ac-ft. $2.57 <br />Credit worthiness: The SSIC has no existing debt. Table 3 shows the Financial Ratios for the <br />SSIC and indicates 3 ratios in the average category and 1 in the weak category with the <br />$72,000 CWCB loan in place. <br />Table 3. Financial Ratios <br />Financial Ratio Without With <br />the ro'ect The ro'ect <br />Operating Ratio (revenue/expense) 95% 100% <br />weak: less than 100% (weak) (average) <br />average: 100% - 120% <br />stron : reater than 120% <br />Debit Service Coverage Ratio No Debt 102% <br />(revenues-expenses)/debt service (strong) (average) <br />weak: less than 100% <br />average: 100% - 125% <br />stron : reater than 125% <br />Cash Reserves to Current Expense 38% 33°/a <br />weak: less than 50% (weak) (weak) <br />average: 50% - 100% <br />stron : reater than 100% <br />Annual Cost per Ac-Ft (1,590 ac-ft diverted) $15.81 $19.00 <br />weak: greater than $20 (8Ver8ge) (average) <br />average: $10 - $20 <br />stron : less than $10 <br />As security for the loan the SSIC will pledge assessment revenues backed by assessment covenant and <br />the project itself. This security is in compliance with CWCB Loan Policy #5 (Collateral). <br />Recommendation <br />Staff recommends a CWCB Small Project Loan in maximum amount of $72,000 to the South <br />Side Irrigation Company to rehabilitate the South Side Ditch. The recommended loan terms are <br />30 years at 3:1 % or 20 years at 2.9%, at the borrower's option. Security for the loan will be in <br />compliance with CWCB Loan Policy #5. Staff further recommends that final approval of the loan <br />be conditioned upon all other standard contracting provisions of the CWCB, including loan <br />Policy #16 (Loan Service Charges). <br />Action taken bv the CWCB Januarv 23, 2003 <br />The CWCB approved the Staff Recommendation. <br />cc: John Whiteside, President, South Side Irrigation Co. <br />John Gauthiere, P.E. <br />Linda Bassi, AGO <br />Attachment <br />C:Proj-New\South Side Irrig 0103 memo; L:\boardmem\January03Wgenda Item 19d Jan03\ South Side Irrigation <br />3 <br />