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<br />North Poudre Irrigation Company <br />March 16-17,2004 <br /> <br />Agenda Item 25c <br /> <br />Table 2. Financial Ratios <br /> <br />Financial Ratio Without With completed <br /> the project project <br /> (Aver. 2001-03) (Future Year) <br />Operating Ratio (revenue/expense) <br />weak: less than 100% 147% 150% <br />average: 100% - 120% (strong) (strong) <br />strong: greater than 120% <br />Debt Service Coverage Ratio <br />(revenues-expenses )/debt service 140% 119% <br />weak: less than 100% (strong) (aver.) <br />average: 100% - 125% <br />strona: areater than 125% <br />Cash Reserves to Current Expense <br />weak: less than 50% 11% 8% <br />average: 50% - 100% (weak) (weak) <br />strong: greater than 100% <br />Annual Operating Cost per Acre-Ft.(44,400 AF) <br />weak: greater than $20 existing $24.61 $28.77 <br />average: $10 - $20 (weak) (weak) <br />strana: less than $10 <br /> <br />The ratio of Cash Reserves to Current Expense is in the weak category, but it is fairly typical <br />practice for ditch companies not to carry large cash reserves from year to year. <br /> <br />As security for the loan, the NPIC will pledge assessment revenues backed by an assessment <br />covenant and the project itself. This is in compliance with CWCB Loan Policy #5 (Collateral). <br /> <br />) <br /> <br />Recommendation <br /> <br />Staff recommends a loan not to exceed $614,080 ($608,000 for project costs and $6,080 for the 1 % <br />Loan Service Fee in accordance with CWCB Loan Policy #16), to the North Poudre Irrigation <br />Company from the Severance Tax Trust Fund Perpetual Base Account, to rehabilitate Reservoir #1 <br />(Miner's Lake) dam and to remove silt to reclaim the decreed reservoir capacity. The recommended <br />terms of the loan are 20 years at 3.25% per annum. Security for the loan will be a pledge of <br />assessment revenues backed by assessment covenant and the project itself. <br /> <br />Staff recommends a grant from the Feasibility Study Small Grant Fund in the maximum amount of <br />$5000, to cover one-half of the cost of completing the feasibility study. <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: Stephen Smith, Manager, North Poudre Irrigation Company <br />Ron Slosson, P.E., Fort Collins <br />Linda Bassi, AGO <br /> <br />Attachment <br /> <br />Action Taken bv the CWCS on March 17.2004 <br />The CWCB approved the Staff Recommendation. <br /> <br />Page 5 of 6 <br />