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<br />Glenwood Irrigating Company <br />July 23-24, 2001 <br /> <br />Agenda Item 9a. <br />(Updated July 26, 2001) <br /> <br />Table 4. Financial Ratios <br /> <br />Financial Ratio Without With <br /> the project the proiect <br />Operating Ratio (revenue/expense) 91% 111% <br />weak: less than 100% (weak) (average) <br />average: 100% - 120% <br />strono: oreater than 120% <br />Debit Service Coverage Ratio No debt 140% <br />(revenues-expenses )/debt service (strong) (strong) <br />weak: less than 100% <br />average: 100% - 125% <br />strono: oreater than 125% <br />Cash Reserves to Current Expense 106% 73% <br />weak: less than 50% (strong) (average) <br />average: 50% - 100% <br />strona: areater than 100% <br />Annual Cost per Acre-Foot (6,600 AF) $ 2.30 $3.45 <br />weak: greater than $20 (strong) (strong) <br />average: $10 - $20 <br />stronQ: less than $10 <br /> <br />As security for the loan the GIC will pledge assessment revenues backed by assessment <br />covenant and the project itself. This security is in compliance with CWCS Loan Policy #5 <br />(Collateral). <br /> <br />Recommendation <br />Staff recommends that the CWCS find that Glenwood Irrigation Company is eligible for a loan <br />from the Small Project Loan Account. The diversion structure and headgate are, in poor condition <br />and could be destroyed during the next flood event. If this occurs the Company would be unable <br />to deliver water to its shareholders. Delaying the project until summer or fall 2002 would <br />jeopardize crops and result in undue hardship on the borrower. <br /> <br />Staff recommends a Small Project Loan not to exceed $85,000 to the Glenwood Irrigation <br />Company to rehabilitate the diversion structure and headgate for the Glenwood Ditch. The <br />recommended term of the loan is 30 years and the recommended lending rate is 5%. Security <br />for the loan will be a pledge of assessment revenues backed by assessment covenant and the <br />project itself. <br /> <br />Staff further recommends that final approval of the loan be conditioned upon all other standard <br />contracting provisions of the CWCS. <br /> <br />Action Taken bv the CWCS Julv 23. 2001 <br />The CWCS approved the Staff Recommendation. <br /> <br />cc: Raymond Thompson, Secretary-Treasurer. Glenwood Irrigation Company <br />Denis Davidson, NRCS, Glenwood Springs <br />Linda Bassi, AGO <br /> <br />Attachment <br /> <br />C:\WP51 \Proj-New\Glenwoodl rrigation 701 memo; <br /> <br />L:\boardmem\July01\9a July01 Glenwood Irrig <br /> <br />4 <br />