25d

• Board Meeting Date: 11/19/2008
• Description: CF Section - Changes to Existing Loans - Silt Water Conservancy Dist. - Rehabilitation of System Infrastructure
• Board Meetings - Doc Type: Memo

The financial ratios for t he District are shown in Table 3 below.

Table 3 . Financial Ratios
Financial Ratio Without With project
the project Future Year
200 3 2009+

128 % 145 %
Operating Ratio (revenues/expenses)
(strong ) (strong)
weak: <100% - average: 100% - 120% - strong: >120%

(368K/254 K)

180 % 109 %
Deb t Service Coverage Ratio
(strong) (strong)
(revenues - expenses)/debt service
368K - 254K/105 K
weak: <100% - average: 100% - 120% - strong: >120%

110 % 146 %
Cash Reserves to Current Expenses
( strong ) (strong )
weak: <50% - average: 50% - 100% - strong: >100%
(524K/359 K)

Annual Operating Cost per Acre - Ft. (1 8,000 AF) * $ 12.68 $ 19.92
(average) (a verage )
weak: >$ 20 - average: $10 - $20 - strong: <$10
(359K/18 K)
*total water delivered by the system.

Collateral : As security for the loan, the District will continue to pledge its assessment revenues.
This is in compliance with CWCB Financial Policy #5 (Collateral).

Recommendation

Staff recommends that the Board approve an incr ease of $ 485,103 ($480,300 for project costs
and $4,803 for a 1% Loan Service Fee) to the District from the Construction Fund Account at its
current interest rate of 2.5% for 30 years.
$1,515,000 ($1,500,00 0 for project costs and $15,000 for a 1% Loan Service Fee) for the
Security for the loan shall be collateral in
compliance with CWCB Loan Policy No. 5.

c: Pearl Knight , Secr etary Silt Water Cons ervancy District
Amy Stengel , AGO

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