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<br />Loveland Lake and Ditch Company <br />Updated March 20, 2008 <br />Page 5 of 5 <br /> <br />Agenda Itern 18a <br /> <br />Table 2. Financial Ratios <br /> <br /> Current Future <br />Financial Ratio w/out w/ Project <br /> Proiect <br />Operating Ratio (revenues/expenses) 152% 189% <br />I weak: <100% , -I average: 100% - 120% I-I strong: >120%1 (Strong) (Strong) <br />$29K1$19K $36K119K <br />Debt Service Coverage Ratio N/A 243% <br />(revenues-expenses)/ debt service (No current (Strong) <br />I weak: <100% , -I average: 100% - 120% 1- I strong: >120%1 debt) ($36K-$19K)/ <br />$7K <br />Cash Reserves to Current Expenses 473% 231% <br />I weak: <50% 1- 1 average: 50% - 100% I-I strong: > 1 00%1 (Strong) (Strong) <br />$90K/$19K $60K/$26K <br />Annual Operating Cost per Acre-Foot (based on 2,900AF) $6.50 $9.00 <br />!weak: >$20 , -I average: $10 - $20 , -I strong: <$101 (Strong) (Strong) <br />$ 19K12.9K $26K12.9K <br /> <br />Collateral: Security for the CWCB loan shall be a pledge ofthe Company's revenues. The pledge <br />shall be backed by a rate covenant and annual financial reporting. This security is in compliance <br />with CWCB Financial Policy 5 (Collateral). <br /> <br />Staff Recommendation (Board Approved Staff Recommendation on March 19,2008) <br /> <br />Staff recommends the Board approve a loan not to exceed $106,050 ($105,000 for project costs and <br />$1,050 for the 1 % Loan Service Fee) to the Loveland Lake and Ditch Company for project costs <br />associated with the Loveland Reservoir Inlet Improvement Project from the Severance Tax Trust <br />Fund Perpetual Base Account. The terms ofthe loan shall be a 20-year loan at 2.20% per annum. <br />Security for the loan shall be in compliance with CWCB Financial Policy 5. <br /> <br />Staff further recommends that final approval of the loan be conditioned upon all other standard <br />contracting provisions of the CWCB. <br /> <br />Supplemental Loan Contract Conditions: <br /> <br />Staff also recommends the CWCB contract include a clause requiring the Company to pay their <br />$50,000 bridge loan in full with proceeds from the CWCB loan. <br /> <br />Email copy: Norman M (Greg) Carter, President, Loveland Lake and Ditch Company <br />Amy Stengel, AGO <br /> <br />Attachment: Water Project Loan Program - Project Data Sheet <br />