C150268 Approval Letter

• Contract/PO #: C150268
• Contractor Name: Louden Irrigating Canal and Reservoir Company
• Contract Type: Loan
• Water District: 4
• County: Larimer
• Loan Projects - Doc Type: Approval Letter

Louden Irrigating Canal & Reservoir Company
July ]5,2008
Page 6 of6

Agenda Item 16a

Table 3 shows the Financial Ratios for the Borrower's revenues.

Table 3. Financial Ratios

Past 3 Years Future
Financial Ratio w/ Project
Operating Ratio (revenues/expenses) 110% 115%
I weak: <100% ~ -I average: 100% - 120% I-I strong: >120%~ (Average) (Average)
$154/140K $160/140K
Debt Service Coverage Ratio 130%
(revenues-expenses)/debt service (N/A) (Strong)
I weak: <100% I-I average: 100% - 120% I-I strong: >120%. $160-140/15K
Cash Reserves to Current Expenses 41% 31%
I weak: <50% I-I average: 50% - 100% I-I strong: > 1 00%1 (Weak) (Weak)
$57/140K $57/185K
Annual Operating Cost per Acre-Foot $17 $23
Iweak: >$20 I-I average: $10 - $20 I-I strong: <$101 (Average) (Weak)
$ 140K/8K $185K/8K

Collateral - As security for the loan, the Borrower will pledge assessment revenues. The pledge
shall be backed by a rate covenant. This is in compliance with CWCB Financial Policy #5
(Collateral).

Staff Recommendation (Board Approved Staff Recommendation on July 23, 2008)

Staff recommends the Board approve a loan not to exceed $263,610 ($261,000 for project costs and
$2,610 for the 1 % Loan Service Fee) to the Louden Irrigating Canal and Reservoir Company for the
Rist Benson Reservoir Dam Repair Project from the Severance Tax Trust Fund Perpetual Base
Account. The terms ofthe loan shall be a 30-year loan at 3.5% per annum. Security for the loan
shall be in compliance with CWCB Financial Policy #5.

cc: Dale Leach, President, Louden Irrigating Canal and Reservoir Company
Robert Dickenson, Secretary/Treasurer, Louden Irrigating Canal and Reservoir Company
Duane Smith, Smith Geotechnical
Clint Brown, Smith Geotechnical
Amy Stengel, AGO
Susan Schneider, AGO

Attachment: Water Project Loan Program - Project Data Sheet