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<br />Greeley and Loveland Irrigation Company <br />January 22-23, 2003 <br /> <br />Agenda Item 19c <br /> <br />Table 2. financial Ratios <br /> <br />Financial Ratio Without With project <br /> the project Future Year <br /> (Aver. 2000-02) 2004+ <br />Operating Ratio (revenue/expense) <br />weak: less than 100% 101% 105% <br />average: 100% - 120% (aver.) (aver.) <br />strano: oreater than 120% <br />Debt Service Coverage Ratio <br />(revenues-expenses )/debt service 297% 104% <br />weak: less than 100% (strong) (aver. ) <br />average: 100% - 125% <br />strano: areater than 125% <br />Cash Reserves to Current Expense <br />weak: less than 50% 39% 32% <br />average: 50% - 100% (weak) (Weak) <br />strano: areater than 100% <br />Annual Operating Cost per Acre-Ft. (37,812 AF) <br />weak: greater than $20 $13.15 $15.31 <br />average: $10 - $20 (aver.) (aver.) <br />strano: less than $10 <br /> <br />While the ratio of Cash Reserves to Current Expense is in the weak category, it is fairly typical <br />practice for ditch companies not to carry large cash reserves from year to year. The GLlC cash <br />ratio is favorable when considering that a more typical ratio for an irrigation companies is 10 to <br />15%. <br /> <br />As security for the loan the GLlC 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 />Recommendation <br /> <br />Staff recommends a CWCS Small Project Loan, not to exceed $1,000,000, to the Greeley Loveland <br />Irrigation Company from the Construction Fund to rehabilitate the low-level outlet structure at Boyd <br />Lake The recommended term of the loan is 30 years and the recommended lending rate is 3.25% per <br />annum. Security for the loan will be a pledge of assessment revenues backed by assessment <br />covenant and the project itself. <br /> <br />Staff further recommends that final approval of the loan be conditioned upon all other standard <br />contracting provisions of the CWCB, including the 1 % loan origination fee charged in accordance <br />with CWCB Policy #16. <br /> <br />cc: Ron Brinkman, General Manager, Greeley and Loveland Irrigation Company. <br />Ed Toms, Boyle Engineering Corporation <br />Linda Bassi, AGO <br /> <br />Attachment <br /> <br />Page 5 of 7 <br />