C150278 Approval letter - Laserfiche WebLink

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Weldon Valley Ditch Company Updated November 20, 2008 Page 4 of 4 Agenda Item 26c 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 Financial Ratio Past 2 Years W/ project Operating Ratio (revenues/expenses) 103% 103% weak: <100% - avera e: 100% - 120% - stron : >120°/ (Average) $89/87K (Average) $97/94K Debt Service Coverage Ratio 122% 119% (revenues-expenses)/debt service (Strong) (Average) weak: <100% - avera e: 100% - 120% - stron : >120°/ 89-78/9K $97-78/16K Cash Reserves to Current Expenses 31% 13% weak: <50% - avera e: 50% - 100% - stron : >100°/ (Weak) $27/87K (Weak) $12/94K Annual Operating Cost per Acre-Foot (36,000 AF) $2.41 $2.62 eak: >$20 - avera e: $10 - $20 - stron : <$1 (Strong) $87K/36K AF (Strong) $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 compliance with CWCB Financial Policy #5 (Collateral). Staff Recommendation (Board approved Staff recommendation November 19, 2008) 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 Severance Tax Trust Fund Perpetual Base Account. The loan terms shall be 30 years at a blended interest rate of 2.6% per annum. Security for the loan shall be in compliance with CWCB Financial Policy #5. cc: Rickey J. Lorenzini, President, 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