PROJC01804 ‎(3)‎

• Contract/PO #: C150138
• Contractor Name: Supply Irrigating Ditch Company
• Contract Type: Loan
• Water District: 0
• County: Boulder
• Loan Projects - Doc Type: Approval Letter

Supply Irrigating Ditch Co.
March 24-26, 2003.

Agenda Item 24e
(Updated March 28, 2003)

Credit worthiness: SIDC has one existing debt in amount of $21,045 to the First National Sank
of Longmont, upon which all payments have been made as agreed. A condition of the CWCS
loan will be that the bank subordinates its position so that the CWCS has a first position on the
collateral (the pledge of revenues and the project.) Table 2 shows the Financial Ratios and
indicates, with the exception of cash reserves, average to strong ability to repay with the project
in place.

Financial Ratio Without With
the project The Droject
Operating Ratio (revenue/expense) 126% 115%
weak: less than 100% (strong) (average)
average: 100% - 120%
strona: areater than 120%
Debt Service Coverage Ratio 1114% 130%
(revenues-expenses)/debt service (strong) (strong)
weak: less than 100%
average: 100% - 125%
strona: areater than 125%
Cash Reserves to Current Expense 7% 8%
weak: less than 50% (weak) (weak)
average: 50% - 100%
strona: areater than 100%
Annual Cost per Ac-Ft (9,500/9,745 ac-ft) $7.50 $12.93
weak: greater than $20 (strong) (average)
average: $10 - $20
strona: less than $10

Table 2. Financial Ratios

As security for the loan the SIDC will pledge assessment revenues backed by assessment
covenant and the project itself. This security is in compliance with CWCS Loan Policy #5
(Collateral).

Recommendation
Staff recommends a CWCS Small Project loan from the Construction fund not to exceed
$1,000,000, to the Supply Irrigating Ditch Company to rehabilitate and enlarge the Knoth
Reservoir. The recommended term of the loan is 30 years and the recommended blended
interest rate is 3% (3.079% Annual Percentage Rate.) Security for the loan will be a pledge of
assessment revenues backed by assessment covenant and the project itself (an easement for
use of the Knoth Reservoir, and the storage rights), in accordance with CWCS Loan Policy #5.

Staff further recommends that final approval of the loan be conditioned upon standard
contracting provisions of the CWCS, including the 1 % loan origination fee charged in
accordance with CWCS Policy #16.

Action taken bv the CWCS March 26. 2003
The CWCS approved the Staff Recommendation, with the revisions shown above.

cc: Dan Grant, Secretary-Treasurer, Supply Irrigating Ditch Company.
Duane Smith, P.E., Smith Geotech.
Linda Bassi, AGO

Attachment

C:\Proj-New\SupplylrrCo303memo
L:\boardmem\Mar03\24e - Supply Irrigating Ditch Co

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