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Loveland Lake and Ditch Company March 11, 2D08 Page 5 of 5 Table 2. Financial Ratios Agenda Item 18a Current Futut•e Financial Ratio w/out • w/ Project Pro ect Operating Ratio (revenues/expenses) 152% 189% weak: '100% - avera e: 100%- 120% - stron : >120°/ (Strong) (Strong) $29K/$19K $36K/19K Debt Service Coverage Ratio N/A 243% (revenues-expenses)/debt service (No current (Strong) weak: <100% - avera e: 100%- 120% - stron : >120°/ debt) ($36K-$19K)/ $7Ik Cash Reserves to Current Expenses 473% 231% weak: <50% - average: 50% - 100% - strong: >100°/ (Strong) $90K/$19K (Strong) $60K/$26K Annual Operating Cost per Acre-Foot (based on 2,900AF) $6.50 $9.00 eak: >$20 - avera e: $10 - $20 - stron : '$10 (Strong) $19K/2.9K (Strong) $26K/2.9K Collateral: Security for the CWCB loan shall be a pledge of the Company's revenues. The pledge shall be backed by a rate covenant and annual financial reporting. This security is in compliance with CWCB Financial Policy 5 (Collateral). Staff Recommendation Staff recommends the Board approve a loan not to exceed $106,050 ($105,000 for project costs and $1,050 for the 1% Loan Service Fee) to the Loveland Lake and Ditch Company for project costs associated with the Loveland Reservoir Inlet Improvement Project from the Severance Tax Trust Fund Perpetual Base Account. The terms of the loan shall be a 20-year loan at 2.20% per annum. Security for the loan shall be in compliance with CWCB Financial Policy 5. Staff further recommends that final approval of the loan be conditioned upon all other standard contracting provisions of the CWCB. Supplemental Loan Contract Conditions: Staff also recommends the CWCB contract include a clause requiring the Company to pay their $50,000 bridge loan in full with proceeds from the CWCB loan. Email copy: Norman M (Greg) Carter, President, Loveland Lake and Ditch Company Amy Stengel, AGO Attachment: Water Project Loan Program Project Data Sheet