26b

• Board Meeting Date: 11/19/2008
• Description: CF Section - New Project Loans - New Salida Ditch Company - Ditch Pipeline Project
• Board Meetings - Doc Type: Memo

New Salida Ditch Company Agenda Item 26b
November 10, 2008
Page 4 of 4
Table 2 shows the Financial Ratios for the Company.
Table 2. Financial Ratios
Past Years Future
Financial Ratio
109% 108%
Operating Ratio (revenues/expenses)
(Average) (Average)
weak: <100% - average: 100% - 120% - strong: >120%
$147/135K $166/154K
Debt Service Coverage Ratio
162%
(revenues-expenses)/debt service
(N/A) (Strong)
$166-135/19K
weak: <100% - average: 100% - 120% - strong: >120%
8% 7%
Cash Reserves to Current Expenses
(Weak) (Weak)
weak: <50% - average: 50% - 100% - strong: >100%
$11/135K $11/154K
$19.27 $22.01
Annual Operating Cost per Acre-Foot
(based on 7000 AF)
(Average) (Weak)
weak: >$20 - average: $10 - $20 - strong: <$10
$135K/7K $154K/7K
Collateral – As security for the loan, the Company will pledge assessment revenues backed by a
rate covenant and the Project itself. This is in compliance with CWCB Financial Policy #5
(Collateral).
Staff Recommendation
Staff recommends the Board approve a loan not to exceed $365,620 ($362,000 for project costs and
$3,620 for the 1% Loan Service Fee) to the Ne w Salida Ditch Company for its Ditch Pipeline
Project from the Severance Tax Trust Fund Perpet ual Base Account. The loan terms shall be 30
years at the agricultural interest rate of 2.5% per annum. S ecurity for the lo an shall be in
compliance with CWCB Financial Policy #5.
cc: Terry Scanga, President, New Salida Ditch Company
Chris Manera, Colorado River Engineering
Susan Schneider, AGO
Amy Stengel, AGO
Attachment: Water Project Loan Program – Project Data Sheet