26c

• Board Meeting Date: 11/19/2008
• Description: CF Section - New Project Loans - Weldon Valley Ditch Company - Cottonwood Draw Flume
• Board Meetings - Doc Type: Memo

Weldon Valley Ditch Company Agenda Item 26c
November 10, 2008
Page 4 of 4
The remaining balance is $101,400 with a maturity date in 2018. The Company has a good history
with the CWCB and has made all payments on time.
TABLE 2
FINANCIAL RATIOS
Future
Past 2 Years
Financial Ratio
w/ Project
103% 103%
Operating Ratio (revenues/expenses)
(Average) (Average)
weak: <100% - average: 100% - 120% - strong: >120%
$89/87K $97/94K
Debt Service Coverage Ratio
122% 119%
(revenues-expenses)/debt service
(Strong) (Average)
weak: <100% - average: 100% - 120% - strong: >120% 89-78/9K $97-78/16K
31% 13%
Cash Reserves to Current Expenses
(Weak) (Weak)
weak: <50% - average: 50% - 100% - strong: >100%
$27/87K $12/94K
$2.41 $2.62
Annual Operating Cost per Acre-Foot
(36,000 AF)
(Strong) (Strong)
weak: >$20 - average: $10 - $20 - strong: <$10
$87K/36K AF $94K/36K AF
Collateral – As security for the loan, the Company will provide a pledge of assessment revenues
backed by a rate covenant. This is in complia nce with CWCB Financial Policy #5 (Collateral).
Staff Recommendation
Staff recommends the Board approve a loan not to exceed $136,350 ($135,000 for project costs and
$1,350 for the 1% Loan Service Fee) to the Weldon Valley Ditch Company for the improvements
to the Cottonwood Draw Flume from the Severa nce Tax Trust Fund Perpetual Base Account. The
loan terms shall be 30 years at a bl ended interest rate of 2.6% per a nnum. Security for the loan shall
be in compliance with CWCB Financial Policy #5.
cc: Rickey J. Lorenzini, Pres ident, Weldon Valley Ditch Company
Foy Chapin, Vice President, Weldon Valley Ditch Company
Eric Christensen, Secretary, Weldon Valley Ditch Company
Brent Nation, Nation Engineering Services, LLC
Amy Stengel, AGO
Susan Schneider, AGO