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<br />Silt Water Conservancy District <br />March 24-26, 2003 <br /> <br />Agenda Item 24a. <br />(updated March 27, 2003) <br /> <br />Table 1 is a summary of the financial aspects of the project. Annual assessments will remain at $9 <br />per share with a Construction Fund loan of $486,000 (loan payments will be covered by existing <br />revenues.) The CWCB loan payment (and 10% reseNe) of $26,400 represents a cost of $6.60 per <br />acre-foot, based on average annual diversions 4,000 acre-feet at the pumping plant. <br /> <br />Table 1. Financial Summary <br /> <br /> <br />$540,100 <br />$486,000 <br />$26,400 <br />305 <br />15,000 <br />$9.00 <br />$9.00 <br />$6.60 <br /> <br />Credit worthiness: The District has a 1963 repayment contract with the US Bureau of Reclamation. <br />The annual payment is $19,200 and the outstanding balance is approximately $350,000. The District <br />also has an existing CWCB loan in original amount of $100,000 with an annual payment of $5,725, <br />approved in January 2000. Payments on these loans have been made as agreed, and these loans <br />are current. The financial ratios for the SWCD are shown in Table 2, and indicate average to strong <br />ability to repay the new CWCB loan. <br /> <br />Table 2 Financial Ratios, SWCD <br /> <br />Financial Ratio Without With <br /> the Droiect The Droject <br />Operating Ratio (revenue/expense) 128% 115% <br />weak: less than 100% (strong) (average) <br />average: 100% - 120% <br />strano: oreater than 120% <br />Debt SeNice Coverage Ratio 350% 180% <br />(revenues-expenses)/debt seNice (strong) (strong) <br />weak: less than 100% <br />average: 100% - 125% <br />strono: oreater than 125% <br />Cash ReseNes to Current Expense 110% 79% <br />weak: less than 50% (strong) (average) <br />average: 50% - 100% <br />strano: oreater than 100% <br />Annual Cost per Ac-Ft (15,000 ac-ft delivered) $15.21 $16.81 <br />weak: greater than $20 (average) (average) <br />average: $10 - $20 <br />strono: less than $10 <br /> <br />As security for the loan the SWCD will pledge assessment revenues backed by assessment <br />covenant. This security is in compliance with CWCB Loan Policy #5 (Collateral). The SWCD is <br />considered a governmental entity, and is subject to Tabor. The District has established a Water <br />Activity Enterprise to contract for the loan. <br /> <br />3 <br />