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<br />Alternative Financing Sources <br /> <br />The Company actively sought alternative financing. They were able to get an in-kind <br />grant from the NRCS to cover project planning and design (value about $17,000). <br /> <br />Table 2 is a summary of the financial aspects of the project with a $50,000 CWCS Loan. <br />The annual payment would be $2,716 (including the 10% reserve requirement) at the <br />loan terms of 2.75% for 30 years. This represents $0.68 per acre-foot, based on average <br />annual diversions of 4,000 acre-feet. <br /> <br />Table 2. Financial Summary <br /> <br /> <br />$67,000 <br />18 <br />1450 <br />$50,000 <br />$2,716 <br />$2.00 <br />$3.90 <br />$0.68 <br /> <br />Credit Worthiness <br /> <br />The RDAEC has no existing debt. Table 3 shows the Financial Ratios for the RDAEC <br />and indicates average to strong ability to repay a $50,000 CWCS loan with the project in <br />place. <br /> <br />Financial Ratio Without With <br /> the Droiect The Droiect <br />Operating Ratio (revenue/expense) 105% 120% <br />weak: less than 100% (average) (average) <br />average: 1000k -120% <br />strona: areater than 120% <br />Debit Service Coverage Ratio No Debt 138% <br />(revenues-expenses)/debt service (strong) (strong) <br />weak: less than 100% <br />average: 100% - 125% <br />strona: areater than 125% <br />Cash Reserves to Current Expense 404% 262% <br />weak: less than 50% (strong) (strong) <br />average: 50% - 100% <br />strona: areater than 100% <br />Annual Cost per Ac-Ft (4,000 ac-ft diverted) $0.73 $1.41 <br />weak: greater than $20 (strong) (strong) <br />average: $10 - $20 <br />strono: less than $10 <br /> <br />Table 3. Financial Ratios <br /> <br />" <br />