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� <br />Cedar Mesa Ditch and Reservoir Company Agenda Item 9b. <br />July 2324, 2001 (Updated July 26, 2001) <br />Table 4. Financial Ratios <br />Financial Ratio Wifhout With <br />fhe ro'ect the ro'ect <br />Operating Ratio (revenue/expense) 127% 110% <br />weak: less than 100% (strong) (average) <br />average: 100% - 120% <br />stron : reater than 120% <br />Debit Service Coverage Ratio 158% 113% <br />(revenues-expenses)/debt service (strong) (average) <br />weak: less than 100% <br />average:100% -125% <br />stron : reater than 125% <br />Cash Reserves to Current Expense 62% 55% <br />weak: less than 50% (average) (average) <br />average: 50% - 100% <br />stron : reater than 100°/a <br />Annual Cost per Acre-Foot (903 AF) $ 9.01 $16.11 <br />weak: greater than $20 (strong) (average) <br />average: $10 - $20 <br />stron : less than $10 <br />As security for the loan the CMDRC will pledge assessment revenues backed by assessment <br />covenant and the project itself. The CMDRC owns the Cedar Mesa Dam and Reservoir. The <br />reservoir lies on Forest Service property with use granted under the 1891 Department of Interior <br />Act. This security is in compliance with CWCB Loan Policy #5 (Collateral). <br />Recommendation <br />Staff recommends that the CWCB find that Cedar Mesa Ditch and Reservoir Company is <br />eligible for a loan from the Small Project Loan Account. The Company needs to rehabilitate the <br />downstream slope of the Cedar Mesa Dam to control seepage and reduce the possibility of a <br />sliding failure of the slope. If the project is not completed in fall 2001, the reservoir can not be <br />used to capacity in spring 2002, and the Company will not be able to provide full water delivery to <br />its shareholders. The CMDRC is eligible for a loan from the Small Project Loan Account, since <br />delaying construction until summer or fall 2002 would result in a hardship on the Borrower. <br />Staff recommends a Small Project Loan not to exceed $100,000 to the Cedar Mesa Ditch and <br />Reservoir Company to rehabilitate the Cedar Mesa Dam. The recommended loan terms are the <br />standard CWCB terms for agricultural projects in 2001 (30 years at 3.5%, 20 years at 3.25%, or <br />10 years at 3%) at the Borrower's option. Security for the loan will be a pledge of assessment <br />revenues backed by assessment covenant and the project itself. <br />Staff further recommends that final approval of the loan be conditioned upon all other standard <br />contracting provisions of the CWCB. <br />Action Taken bv the CWCB Julv 23, 2001 <br />The CWCB approved the Staff Recommendation. <br />cc: Bud Burgess, P�esident, Cedar Mesa Ditch and Reservoir Company, 2380- N. Rd., Eckert, CO 81415 <br />Michael Smith, P.E., Knight Piesold and Co., 1050 17`" Street, Suite 500, Denver, CO 80265-0500 <br />Linda Bassi, AGO <br />Attachment <br />C:\WP51\Proj-New\CedarMesa701memo; L:\boardmem\July01\9bJuly01 CedarMesa <br />