23c

• Board Meeting Date: 9/17/2008
• Description: CF Section - New Project Loans - WRCC, Inc. - Windsor Dam and Spillway Maintenance Project
• Board Meetings - Doc Type: Memo

WRCC, Inc. Agenda Item 23c
September 9, 2008
Page 6 of 6
TABLE 4
FINANCIAL SUMMARY
Future
Past 2 Years
Financial Ratio
w/ Project
102% 110%
Operating Ratio (revenues/expenses)
(Average) (Average)
weak: <100% - average: 100% - 120% - strong: >120%
$842/822K $904/822K
Debt Service Coverage Ratio
120%
(revenues-expenses)/debt service
(N/A) (Average)
weak: <100% - average: 100% - 120% - strong: >120% $904-822/68K
626% 578%
Cash Reserves to Current Expenses
(Strong) (Strong)
weak: <50% - average: 50% - 100% - strong: >100%
$5.1M/822K $5.1M/890K
$23 $25
Annual Operating Cost per Acre-Foot
(based on 35,000 AF)
(Weak) (Weak)
weak: >$20 - average: $10 - $20 - strong: <$10
$822K/35K $890K/35K
Collateral – As security for the loan, the Company w ill pledge assessment revenues. The pledge
shall be backed by a rate covenant. This is in compliance with CWCB Financial Policy #5
(Collateral).
Staff Recommendation
Staff recommends the Board approve a loan not to exceed $1,285,730 ($1,273,000 for project costs
and $12,730 for the 1% Loan Service Fee) to WRCC, Inc. for the Windsor Dam and Spillway
Maintenance Project from the Severance Tax Trus t Fund Perpetual Base Account. The terms of the
loan shall be a 30-year loan at a blended rate of 2.55% per annum. Security for the loan shall be in
compliance with CWCB Financial Policy #5.
Staff further recommends an additional contract condition requiring full payment of the Farmers
Bank bridge loan with proceeds from the CWCB funds.
cc: Mayo Sommermeyer, The Dow Law Firm, LLC
Amy Stengel, AGO
Susan Schneider, AGO
Attachment: Water Project Loan Program – Project Data Sheet