BOARD0212B

• Board Meeting Date: 5/20/2002
• Description: CF Section - Glenwood Irrigation Company
• Board Meetings - Doc Type: Memo

Glenwood Irrigation Company
May 20-21, 2002

Agenda Item 12b.

Table 4. Financial Ratios

Financial Ratio Without With
the Droiect The Droiect
Operating Ratio (revenue/expense) 108% 121%
weak: less than 100% (average) (strong)
average: 100% -120%
strona: oreater than 120%
Debit Service Coverage Ratio 143% 134%
(revenues-expenses)/debt service (strong) (strong)
weak: less than 100%
average: 100% - 125%
strono: oreater than 125%
Cash Reserves to Current Expense 50% 31%
weak: less than 50% (average) (weak)
average: 50% - 100%
strono: oreater than 100%
Annual Cost per Acre-Foot (6,600 AF) $4.54 $8.25
weak: greater than $20 (strong) (strong)
average: $10 - $20
strono: less than $10

As security for the loan the GIC will pledge assessment revenues backed by assessment
covenant and the project itself. This security is in compliance with CWCS Loan Policy #5
(Collateral).

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Recommendation .
Staff recommends a Small Project Loan not to exceed $386,000 to the Glenwood Irrigation
Company to rehabilitate the 1940's portion of the siphon for the Glenwood Ditch. The
recommended term of the loan is 30 years and the recommended lending rate is 4%. Security
for the loan will be a pledge of assessment revenues backed by assessment covenant and the
project itself.. Approval of this loan shall be contingent upon final approval of the Construction
Fund Sill (HS 02-1152), allowing CWCS authorization of projects up to $1 million without
legislative approval.

Staff further recommends that final approval of the loan be conditioned upon all other standard
contracting provisions of the CWCS.

cc: Raymond Thompson, Secretary-Treasurer, Glenwood Irrigation Company
Jim Wells, Glenwood Irrigation Company
David Kotz, P.E.
Linda Bassi, AGO

Attachment

C:\WP51 \Proj-New\Glenwoodlrrigation502memo;

L:\boardmem\May02\12b May02 Glenwood Irrig

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