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- c~ ~ ) . Table 1. Estimated Costs for CWPDA Acquisition of Bessemer Shares Commercial bank loan $207,903 CWPDA water account loan $36,689 Engineering costs $2,100 Augmentation station $7,00a Total costs $253,692 Wheeler estimates that about 39 percent of the depletions of the 16 wells result from pumping for irrigation. The remaining 61 percent of depletions are primarily for commercial uses. Based on these percentages, the requested loan amount is for 80.85 percent of the total project cost using 90 percent of allowable costs for irrigation wells and 75 percent for the commercial wells. A weighted lending rate of 5.33 percent was calculated based on 3.50 percent for the irrigation wells and 6.50 percent for the commercial wells. The calculations for the amount of the loan and the lending rate are shown in Table 2. Table 2. Calculations for CWPDA Loan Amount and Lending Rate Type of Use Percent of Allowable Loan Lending Weighted Total Use Loan % Amount Rate Lending Rate Agricultural 39% 90% $89,045 3.50 % 1.36% Commercial 61% 75% $116,064 6.50% 3.97% Total 100% N/A $205,109 N/A 5.33"1" CWPDA is requesting a loan of $205,000 to refinance the purchase of the 87.35 shares in the Bessemer Ditch at 5.33 percent for 30 years. As collateral for the loan, CWPDA will pledge revenues from assessments and depletion charges as well as the 87.35 shares in the Bessemer Ditch. Financial Analysis Staff has reviewed the Association's financial statements for 1997 to 1999 and the results are summarized in Table 3. CWPDA is currently in very sound financial condition with no long-term debt and adequate cash reserves. Table 3. CWPDA Financial Analysis Ratio Weak Average Strong 1997-1999 Avg. Operating Ratio <100% 100-120 % >120% 200% Debt Service Coverage Ratio <100% 100-125% >125% N/A Cash Reserves to Current Expense <50% 50-100% >100% 123% iAnnual Cost per Acre-Foot >$20 $10-$20 <$10 $6.42 3