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