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<br />. <br /> <br />. <br /> <br />Table 3. NPIC Financial Summary <br /> <br /> <br />@,,_",'.".h.~~~...,....+.. . <br />1t.1Q2,gf&~~ ~l~f1$.. <br />1.15 1.08 <br />0.50 1.57 <br />ense 0.09 0.03 <br /> <br /> <br />. <br /> <br />(1) Operating revenues/( operating expense-depreciation) <br />(2) (Total revenues-actual operating expense)/debt service <br /> <br />The ratios in Table 3 show that the operating ratio is satisfactory in each year. Debt <br />service coverage is weak in 1996 but recovers to the very strong category in 1997 and <br />1998. The indicator of concern here is the ratio of current (liquid) assets to operating <br />expense with percentages of three to nine percent. This leaves very little in reserve to <br />cover unforeseen expenses in any year. The net stockholders equity in 1998 was about <br />$7.3 million. <br /> <br />As of October 31, 1998, the Company has a balance of about $4.4 million in six long- <br />term CWCB Construction Fund loans which represents the Company's entire long-term <br />debt. The six loans are summarized in Table 4. <br /> <br />Table 4. CWCB Loans to NPIC <br /> <br />:>B5 <br />'fLtq <br />1I1h <br />i 7351)-, <br /> <br />$1,115,656 Dam embankment, rip rap, etc <br />$1,OQl,Q9~Dam embankment, etc. <br />dtS.S.4.Q. Res. site and water rights <br />$366,572 Dam embankment, etc. <br />$317,597. Dam embankment, etc. <br />ell ,671 ,866 )Reservoir Nos. 5 and 6 <br />$~~491,535 <br />( 700 <br />J-1, q )535 <br />Staff believes that the collateral for the Park Creek and the Reservoir Nos. 5 and 6 loans <br />is more than adequate. We are, however, concerned about the collateral on the other four <br />loans with a total balance of about $2.8 million. During the course of the feasibility work <br />on the present loan application, the staff discussed with the borrower the possibility of <br />amending our existing contracts on the four loans to substitute other collateral. <br /> <br /> <br />. <br /> <br />Fossil Creek Dam <br />NPIC Reservoir No. 15 <br />Park Creek Reservoir <br />Clark Lake Dam <br />NPIC Reservoir No.2 <br />NPIC Reservoir Nos. 5 and 6 <br />Total <br /> <br />The Company is requesting 20-year loans for both the $500,000 financing and for the <br />new loan of$I,107,000. The company is also requesting a loan for 90 percent of project <br />costs on the second financing. Thus, the NPIC will finance 25 percent of project costs for <br />the first increment of$500,000 and 10 percent ofproject costs for the second increment <br />of <br /> <br />. <br /> <br />4 <br />