Laserfiche WebLink
<br />Hope Ditch Company <br />January 24-25, 2005 <br /> <br />Agenda Item 18a <br /> <br />Table 1 is a summary of the financial aspects of the project. A CWCB Loan of $153,000 would <br />have an annual payment of $9,440 (including the 10% reserve requirement) at the loan terms of <br />3.75% for 30 years. <br /> <br />Table 1. Financial Summary <br /> <br /> <br />$170,000 <br />21 <br />23 <br />$153,000 <br />$9,440 <br />$38 <br />$40 <br />$78 <br />$34 <br />$1452 <br /> <br />Creditworthiness: HDC has no existing debt. <br /> <br />Table 2 shows the Financial Ratios and indicates overall average ability to repay the $153,000 <br />CWCB loan, with the increased capital assessment. <br /> <br />Table 2. Financial Ratios <br /> <br />Financial Ratio Without With project <br /> the project Future Years <br /> fA ver. 2002-04) 2007+ <br />Operating Ratio (revenue/expense) <br />weak: less than 100% 101% 156% <br />average: 100% - 120% (aver.) (strong) <br />stron!:r greater than 120% <br />Debt Service Coverage Ratio <br />(revenues-expenses)/debt service 131% <br />weak: less than 100% N/A (strong) <br />average: 100% - 125% <br />strong: greater than 125% <br />Cash Reserves to Current Expense <br />weak: less than 50% 158% 25% <br />average: 50% - 100% (strong) (weak) <br />strong: greater than 100% <br />Debt per Tap (23 taps) <br />weak: greater than $5000 N/A $6,650 <br />average: $2500 - $5000 (weak) <br />strong: less than $2500 <br />Monthly Water Bill <br />average: $30 $30* $78 <br />weak: greater than $60 (aver.) (weak) <br /> <br />*Rate is prior to December 2005, when the average monthly rate increased to $38. (The current <br />statewide monthly water bill average is approximately $35.) <br /> <br />Page 4 of 5 <br />