PROJ00407 ‎(2)‎

• Contract/PO #: C150043
• Contractor Name: Jackson Lake Reservoir & Irrigation Company
• Contract Type: Loan
• Water District: 1
• County: Morgan
• Bill Number: HB 00-1419
• Loan Projects - Doc Type: Approval Letter

~aCKson LaKe i~.eservOlr 3nd imgauon CJ.
November 22423.1999. .

Agenaa item ~ 2b.
{Updated Oecemoer 2. 1999 and March 23. 2.

Table 1, Financial Summary

I PCJlect Cost

$374,000 I

;";an Amount (90% of Project Cost) i $336,600
! CWCS loan Payment Amount, including 10% loan reserve I $20,577
Number of Shareholders I 90
Number of Shares of Stock I 1550
I Current Assessment per Share i $60
Future Assessment per Share ! $73.28 I
I Annual Project Cost per acre-foot I $0.61
(Average annual diversions: 34,000 acre-feet)

Water is used by the shareholders for agricultural purposes, The JlRIC would qualify for the
CWCS Agricultural lending rate, The JlRIC has no existing debt.

Table 2. Financial Ratios

Financial Ratio Without the project I With the project
Operating Ratio (revenue/expense) 117% (average) 1140% (strong)
Debit Service Coverage Ratio No debt (strong) 171% (strong)
(revenues-expenses)/debt service
Cash Reserves to Current Expense 43% (weak) 43% (weak)
Annual Cost per Acre-Foot $2.59 (strong) $3.34 (strong)

As security for the loan the JlRIC will pledge revenues from assessments, one payment in a
certificate of deposit account to be held by the State, and the project itself,

Recommendation
Staff recommends a loan not to exceed $336.600 to the Jackson lake Reservoir and Irrigation
Company for up to 90% of the costs to rehabilitate the Company's diversion structure on the
South Platte River, The recommended term of the loan is 30 years and the lending rate would
be that rate approved by the CWCS for Agricultural borrowers in 2000, Security for the loan will
be a pledge of revenues from assessments, one payment in a certificate of deposit account to
be held by the State, and the project itself,

Staff further recommends that final approval of the loan be conditioned upon acceptance of the
project and the associated financial obligations by a vote of the shareholders of the Com.Qany,
and all standard CWCB contracting provisions,

Action taken bv the CWCB November 23.1999 and March 20, 2000
On Nov. 23, 1999, the CWCB approved the staff recommendation with loan rate of 4%,
On Mar. 20, 2000, the CWCS specified the loan will come from the Severance Tax Perpetual
Sase Account and be included in the Board's year 2000 Construction Fund Bill,

cc: Edward E. Fritzler, President Jackson Lake Reservoir & Irrigation Co.
Jack Odor, P.E.
Linda Bassi, AGO
Attachment

C:\WPS1\Proj,NewIJacksonLake Diversion 1199 L:\boardmem\nov99\ 13b-Nov99

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