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<br />Orchard Mesa Irrigation District <br />March 13,2006 (Revised March 24, 2006) <br />Page 4 of 4 <br /> <br />Agenda Item 17a <br /> <br />Table 2 shows the Financial Ratios for the District to be strong with the exception of the cost per <br />acre-foot for water delivery. <br /> <br />Table 2. Financial Ratios <br /> <br />Financial Ratio Without Project With Project <br />Previous Years Future Years <br />Operating Ratio (revenues/expenses) 125% 125% <br />I weak: <100% I-I average: 100% - 120% 1- I strong: >120%1 (Strong) (Strong) <br />Debt Service Coverage Ratio 653% 338% <br />(revenues-expenses )/debt service <br />I weak: <100% 1- r averaQe: 100% -120% 1- I strano: >120%1 (Strong) (Strong) <br />Cash Reserves to Current Expenses 251% 243% <br />I weak: <50% I-I average: 50% - 100% I-I strong: >100%' (Strong) (Strong) <br />Annual Operating Cost per Acre-Ft Delivered* $13 $14 <br />~eak: >$20 I-I average: $10 - $20 I-I strong: <$101 (Average) (Average) <br /> <br />· Calculation based on an annual average of 58,323 acre-feet delivered by the District <br /> <br />Collateral: As security for the CWCS loan, the District will pledge assessment revenues backed by <br />an assessment covenant. This security is in compliance with CWeB loan Policy #5 (Collateral). <br /> <br />Staff Recommendation <br /> <br />Staff recommends a loan not to exceed $545,400 ($540,000 for project costs and $5,400 for the 1 % <br />L.,oan Service Fee) to the Orchard Mesa Irrigation District for engineering and construction costs <br />associated with the Stokes Gulch Siphon Replacement Project, from the Severance Tax Trust Fund <br />Perpetual Sase Account. The terms of the loan shall be a 30-year loan at 2.5% per annum. Final <br />approval of the loan shall be conditioned upon all standard contracting provisions of the CWCS <br />Loan Program. Security for the loan shall be collateral in compliance with CWCS Loan Policy #5. <br /> <br />Action Taken bv the CWCB on March 21. 2006 <br /> <br />The CWCB approved the staff recommendation as written above. <br /> <br />Email copy: <br /> <br />Rita Crumpton, District Manager <br />Amy Stengel, AGO <br /> <br />Attachment: Water Project Construction Loan Program - Project Data Sheet <br />