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<br />Pine River - Bayfield Ditch Company <br />May 19-20 2003 . <br /> <br />Agenda ifern 18c <br /> <br />increases in the base assessment rate from $7.25 to $ 12.80 per share. . At the annual meeting in <br />February 2003, shareholders voted unanimously to in.crease assessme.nts to. repay the Joan. <br /> <br />Table 1. Financial Summary <br /> <br />Proiect Cost $267,000 <br />Number of Shareholders 51 <br />Number of Shares of Stock .1952 <br />. CWCS Loan Amount (30 years) $200,000 <br />CWCS Loan Payment (includes 10% reserve) - SeQin 2004 $10,865 <br />Current Asses.sment per-share (2002) $7.25 <br />New Assessments_per share $12.80 <br />Annual Loan Cost per acre-foot (aver. annual delivery: 8,866 ae-ft.) $1.22 <br /> <br />Creditworthiness: The. PRSDC has no outstanding loans. <br /> <br />Table 2 shows the Financial Ratios for the PRBDC and indicates average to strong ability to repay <br />. the $200,000 CWCB loan. <br /> <br />Table 2. Financial Ratios <br /> <br />Financial Ratio Without With project <br /> the. project Future Year <br />. (Aver. 2001-02) 2004+ <br />Operating Ratio (revenue/expense) <br />weak: less than 100% 120% 196% <br />average: 100% - 120% (aver.) (strong) <br />strona: areater than 120% <br />Debt Service Coverage Ratio <br />(revenues-expenses)/debt service N/A 114% <br />weak: lesS than 100% . (aver.) <br />~verage:100% -125% <br />strong: greater than 125% <br />Cash Reserves to Current Expense <br />weak: less than 50% 209% 49% <br />average: 50% - 100% (strong) ( weak) <br />strona: areater than 100% <br />Annual Operating Cost per Acre-Ft. (8866 AF) <br />weak: greater than $20 $1.45 $2.67 <br />average: $10 - $20 (strong) (strong) <br />strong: less than $10. <br /> <br />As security for the loan the PRBDC will pledge assessment revenues backed by an assessment <br />covenant and the projeCt itself. . This i~ in compliance with CWeB Loan Policy #5 (Collateral). <br /> <br />Recommendation <br /> <br />Staff recommends a CWCB Small Project Loan not to exceed $200,000 to the Pine River __ Bayfield <br />Ditch Company from the Construction Fund to replace 2300 feet of their Beaver Creek Siphon.. The. <br />recommended term of the loan is 30 years and the recommended lenc;firig rate is 2.75% per annum. <br />Security for the loan will be a pledge of assessment revenues backed by assessment covenant and <br />. the project itself. <br /> <br />Page 4 of 6 <br />