23b

• Board Meeting Date: 9/17/2008
• Description: CF Section - New Project Loans - Farmers Pawnee Canal Company - Ditch Flow Control Structures Project
• Board Meetings - Doc Type: Memo

Farmers Pawnee Canal Company Agenda Item 23b
September 9, 2008
Page 4 of 5
Financial Analysis
TABLE 1
FINANCIAL SUMMARY
PROJECT/LOAN
Total Project Cost $250,000
CWCB Loan (90% of the Project cost) $225,000
CWCB Loan (Including 1% Service Fee) $227,250
CWCB Annual Loan Payment $10,857
CWCB Loan Obligation (including 10% debt reserve funding) $11,943
Number of Shareholders 110
Numbers of Shares 500
Annual Cost Per Share for Project $24
Annual Cost of Loan per AF (based on 27,260 AF average diversion) $0.44
Creditworthiness : The Company’s current assessment is $190/share. Rates will need to be
increased to $214/share to cove r the new CWCB debt service. The Company has an existing
CWCB loan for rehabilitation of its diversion dam and headgate structure. That loan was for
$29,000 to stabilize the headgate after flood da mage in 1997. There is one $2,600 payment
remaining. The Company has a good history with the CWCB and made all payments on time.
TABLE 2
FINANCIAL SUMMARY
Future
Past 2 Years
Financial Ratio
w/ Project
99% 111%
Operating Ratio (revenues/expenses)
(Weak) (Average)
weak: <100% - average: 100% - 120% - strong: >120%
$96/97K $108/97K
Debt Service Coverage Ratio
47% 100%
(revenues-expenses)/debt service
(Weak) (Average)
96-97/2.6K $108-97/11K
weak: <100% - average: 100% - 120% - strong: >120%
18% 15%
Cash Reserves to Current Expenses
(Weak) (Weak)
weak: <50% - average: 50% - 100% - strong: >100%
$19/104K $16/108K
$3.67 $4.09
Annual Operating Cost per Acre-Foot
(27,260 AF)
(Strong) (Strong)
weak: >$20 - average: $10 - $20 - strong: <$10
$100K/27K AF $108K/27K AF