16a

• Board Meeting Date: 7/22/2008
• Description: CF Section - New Project Loans - Loudon Irrigating Canal & Res. Co. - Rist Benton Res. Dam Rehab. Project
• Board Meetings - Doc Type: Memo

Louden Irrigating Canal & Reservoir Company Agenda Item 16a
July 15, 2008
Page 6 of 6
Table 3 shows the Financial Ratios for the Borrower’s revenues.
Table 3. Financial Ratios
Future
Past 3 Years
Financial Ratio
w/ Project
110% 115%
Operating Ratio (revenues/expenses)
(Average) (Average)
weak: <100% - average: 100% - 120% - strong: >120%
$154/140K $160/140K
Debt Service Coverage Ratio
130%
(revenues-expenses)/debt service
(N/A) (Strong)
weak: <100% - average: 100% - 120% - strong: >120% $160-140/15K
41% 31%
Cash Reserves to Current Expenses
(Weak) (Weak)
weak: <50% - average: 50% - 100% - strong: >100%
$57/140K $57/185K
$17 $23
Annual Operating Cost per Acre-Foot
(Average) (Weak)
weak: >$20 - average: $10 - $20 - strong: <$10
$140K/8K $185K/8K
Collateral – As security for the loan, the Borrower 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 $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 of the loan sh all be a 30-year loan at 3.5% pe r annum. Security for the loan
shall be in compliance with CWCB Financial Policy #5.
cc: Dale Leach, President, Louden Irr igating Canal and Reservoir Company
Robert Dickenson, Secretary/Treasurer, Loude n 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