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C150082 Approval letter
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C150082 Approval letter
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Last modified
10/3/2011 1:24:06 PM
Creation date
5/28/2007 10:30:33 AM
Metadata
Fields
Template:
Loan Projects
Contract/PO #
C150082
Contractor Name
Consolidated Home Supply Ditch and Reservoir Company, The
Contract Type
Loan
Water District
3
County
Larimer
Loan Projects - Doc Type
Approval Letter
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<br />Consolidated Home Supply Ditch and Resarvolr Co. Agenda Item 16a. <br />September 24-25, 2001 (Updated September 26, 2001) <br /> <br />Table 3. Financial Summary <br /> <br />Proiect Cost $1,048,000 <br />Number of Shareholders 275 <br />Number of Shares of Stock 2001 <br />CWCS Loan Amount $943,000 <br />CWCS Loan Pavment !includes 10% reserve\' $56,399 <br />Current Assessment ber share $125 <br />New Assessments oer share $153 <br />Annual Loan Cost oer acre-foot (mean reservoir storaae: 7,522 ac-ft.l $7,50 <br /> <br />Credit worthiness: The CHSDRC has an existing loan with the USDA Rural Development on <br />which all payments have been made as agreed, The outstanding loan balance is approximately <br />$350K. The CWCS would need parity with this loan, or the Company would need to pay it off, <br />Table 4 shows the Financial Ratios for the CHSDRC and indicates that, with the exception of <br />cash reserves, average ability to repay the $943K CWCS loan with the project in place, <br /> <br />Table 4. Financial Ratios <br /> <br />Financial Ratio Without With <br /> the oroiect the oroiect <br />Operating Ratio (revenue/expense) 104% 109% <br />weak: less than 100% (average) (average) <br />average: 100% - 120% . <br />strona: areater than 120% <br />Debit Service Coverage Ratio 77% 100% <br />(revenues-expenses)/debt service (weak) (average) <br />weak: less than 1 00% <br />average: 100% - 125% <br />strona: areater than 125% <br />Cash Reserves to Current Expense 55% 17% <br />weak: less than 50% (average) (weak) , <br />average: 50% - 100% <br />strona: creater than 100% <br />Annual Cost per Acre-Foot (23,623 ac-ft) $11.41 $13,80 <br />weak: greater than $20 (average) (average) <br />average: $10 - $20 <br />strona: less than $10 , <br /> <br />As security for the loan the CHSDRC 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 />4 <br />
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