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<br />Kern Reservoir and Ditch Company <br />November 25-26. 2002 <br /> <br />Agenda Ilem 20h <br />(Updated December 4. 2002) <br /> <br />Table 3. Financial Ratios <br /> <br />Financial Ratio Without With <br /> The Droiect The Droiect <br />Operating Ratio (revenue/expense) 100% 109% <br />weak: less than 100% (average) (average) <br />average: 100% - 120% <br />strona: areater than 120% <br />Debit SeNice Coverage Ratio 100% 110% <br />(revenues-expenses)/debt seNice (average) (average) <br />weak: less than 100% <br />average: 100% - 125% <br />strona-: nreater than 125% <br />Cash ReseNes to Current Expense 50% 16% <br />weak: less than 50% (average) (weak) <br />average: 50% - 100% <br />stron';; nreater than 100% <br />Annual Cost per Acre-Foot (2,600 ac-ft) $18 $136 <br />weak: greater than $20 (average) (weak) <br />average: $10 - $20 <br />s!ronn': less than $10 <br /> <br />As security for the loan the KRDC will pledge assessment revenues backed by assessment <br />covenant and the project itself. This security is in compliance with CWCS Loan Policy #5 <br />(Collateral). <br /> <br />Recommendation <br />Staff recommends a follow-up loan not to exceed $3,620,000 to the Kern ReseNoir and Ditch <br />Company to cover up to 75% of the costs to rehabilitate the Kern ReseNoir. The recommended <br />loan terms are 30 years at 5.1 % or 20 years at 4.8%, at the borrower's option. Security for the <br />loan will be a pledge of assessment revenues backed by assessment covenant and the project <br />itself. The loan will be funded from the Construction Fund. <br /> <br />Staff recommends that the Company be allowed to use this loan to refinance project costs <br />already completed and paid for with short term bridge financing. <br /> <br />Staff further recommends that final approval of the loan be conditioned upon all other standard <br />contracting provisions of the cwes. <br /> <br />Action taken bv the CWCB November 26. 2002 <br />The CWCS approved the Staff Recommendation. <br /> <br />cc: Wayne Miller, President, Kern Reservoir and Ditch Co., 2319 10'h Street, Windsor, CO 80550 <br />Julie Chester, Hall-Irwin Corp., PO Box 2150, Greeley, CO 80632 <br />Colby Hayden. P.E., Rock Mt. Consultants Inc, 1900 south Sunset, Suite 1-f, Longmont, CO 80501 <br />Linda Bassi, AGO <br /> <br />Attachment <br /> <br />C:IWP51IProj-NewIKern 11 02memo: <br /> <br />L:lboardmem\Nov02\20h Nov 02 Kern <br /> <br />4 <br />