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<br />. <br /> <br />. <br /> <br />. <br /> <br />to $7.00 which is also considered acceptable, As collateral for the loan, the Company is <br />offering a pledge of revenues and shares of stock in the Company with an estimated value <br />of $1.0 million. <br /> <br />Jackson Lake Reservoir and Irrigation Co. Financial Analysis <br /> <br />Ralio Weak A vera2e Stron2 1997-1999 Aw. With Loan <br />Operating Ratio (1) <l00 % 100-120 % >120% 101% 198 '70 <br />Debt Service Coverage <100'70 100-125% >125% N/A 110 '70 <br />Ratio (2) <br />Lash Reserves to Current <50% 50-100% >100% 23 % 4.0% <br />"xpense <br />Annual Cost per Acre-Foot >$20 $10-$20 <$10 $3.44 $7.00 <br /> <br />(1) Operating revenue/operating expense <br />(2) (Total eligible revenues-operating expense)/total debt service <br /> <br />Staff did not conduct the type of financial analysis set forth above for the loan requested <br />by Parks. The financial feasibility of the Parks' loan is based upon the collateral offered <br />which is the balance in the special account at the State Treasurer's Office and the pledge <br />of any and all other revenues to cover loan payments over the term of the loan. <br /> <br />The Wheeler report included an economic feasibility analysis of the proposed project. <br />Using both agricultural and recreational benefits, the report indicated a benefit/cost ratio <br />of about 30 (annual benefits may be about 30 times greater than annual costs). <br /> <br />. Conclusion <br /> <br />The loan to the Division of Parks and Outdoor Recreation (State Parks) presents a new <br />challenge for the Board. We have not been asked to loan funds to other state agencies to <br />repair water resource infrastructure projects and have no policy that expressly addresses <br />this situation. <br /> <br />. <br /> <br />Gi ven the facts: <br />. State Parks and the Jackson Lake Reservoir and lnigation Company have been <br />working together to rehabilitate the dam at Jackson Lake; <br />. The Jackson Lake Reservoir and Irrigation Company has re-authorized its $1 million <br />dam repair but cannot afford to borrow the entire amount necessary to return the dam <br />to a safe condition; <br />. State Parks cannot afford to complete its agreement with the reservoir company <br />without this loan; <br />. State Parks is a another DNR agency; <br />. State Parks is establishing a $900,000 account with the state treasurer to finance its <br />loan repayment obligation; <br />. Due to General Fund constraints imposed by voters and constraints on GOCO funds <br />caused by obligating future revenues for land acquisition projects, State Parks would <br />be forced to forego planned capital construction project without the loan; <br />. State parks are enjoyed by millions of Coloradoans statewide; therefore, <br /> <br />4 <br />