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<br />Beaver Creek Reservoir Company <br />November 9,2004 (Revised November 24,2004) <br />Page 4 of 4 <br /> <br />Agenda Item 14a <br /> <br />Table 2 shows the Financial Ratios for the Company. The Company.has adjusted the assessment <br />rates as needed to cover operating and repair costs and therefore, the ratios are shown as strong. <br />Rate history and projections are as follows: 2000 - $16.50/share; 2002 - $21.07/share; 2005 ~ <br />$25.29/share. The price per share was raisedin 2001 in anticipation of the Project. The annual <br />operating cost is weak due to the extensive improvements, which have been made in the last 10 <br />years. <br /> <br />Table 2. Financial Ratios <br /> <br />Financial Ratio Without Project With Project <br />Previous Years Future Years <br />Operating Ratio (revenues/expenses) 422% 500% <br />. I weak: <100%' - I average: 100% - 120%' -I strong: >120%' (Strong) (Strong) <br />Debt Service Coverage Ratio 136% 127% <br />(revenues-exPEilnses )/debt service <br />I weak: < 1 00% I-I averaoe: 100% - 120% I-I strono: >120%1 (Strong) (Strong) <br />Cash Reserves to Current Expenses 75% 18% <br />I weak: <50% I-I average: 50% - 100% I-l strong: >100%1 (Average) (Weak) <br />Annual Operating Cost per Acre-Ft. (1620 AF) $21 $25 <br />Jweak: >$20 '-I average: $10 - $20 ~ -I strong: <$101 (Weak) (Weak) <br /> <br />Collateral: As security for this loan the Company will pledge assessment revenues backed by an <br />asse.ssment covenant and a security interest in the Beaver Reservoir and two storage rights totaling <br />1620 acre-feet. This security is in compliance with CWCB Loan Policy #5 (Collateral). <br /> <br />Staff Recommendation <br /> <br />Staff recommends a loan not to exceed $129,785 ($128,500 for project costs and $1,285 for the 1% <br />Loan Service Fee) to the Beaver Reservoir Company for engineering and construction costs <br />associated with the Beaver Reservoir Liner Protection & Valve Replacement Project, from the <br />Severance Tax Trust Fund Perpetual Base Account. The terms shall be based on the current <br />agricultural rate of 2.5% per annum for a 30-year term. Final approval of the loan shall be <br />conditioned upon all standard contracting provisions of the CWCB Loan Program. Security for the <br />loan shall be collateral in compliance with CWCB Loan Policy #5. <br /> <br />Action Taken bv the CWCB on November17. 2004 <br /> <br />The Colorado Water Conservation Board approved the Staff Recommendation as written. <br /> <br />Email copy: <br /> <br />Jim Briscoe, Company SecretarylTreasurer <br />James Johnson, Golder Associates, Inc. <br />Chad Henderson/Amy Stengel, AGO <br /> <br />Attachment: Water Project Construction Loan Program - Project Data Sheet <br />