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Kenosha Trout Club Agenda Item 11 d. <br />January 24-25, 2001 (Updated February 5, 2001) <br />Table 3. Financial Ratios <br />Financial Ratio Without the ro"ect With the ro'ect <br />O eratin Ratio revenue/ex ense 101 % avera a 104% avera e <br />Debit Service Coverage Ratio <br />revenues-ex enses /debt service No debt (strong) 111 % (average) <br />Cash Reserves to Current Ex ense 191 % stron 116% stron <br />Annual Cost per Acre-Foot <br />Avera a annual diversions -------------- $90 <br />110 acre-feet $355 <br />156 acre-feet <br />Income to repay the CWCB loan will come from a dues increase of about $117 per <br />month. The KTC's ability to enforce payment of membership dues through lien and <br />foreclosure against individual properties assures that dues can always be collected. <br />As security for the loan the KTC will pledge revenues from membership dues backed by <br />rate covenant, and other KTC property (water rights or real estate) of value at least <br />equal to the loan amount. <br />Recommendation <br />Staff recommends a loan in amount of $551,250 to the Kenosha Trout Club to <br />pay for up to 75% of the costs to purchase water rights for augmentation, for directly <br />related engineering and legal costs to convert those water rights to augmentation use, <br />and for enaineerina and construction costs associated with rehabilitation of the Lininger <br />Lake Dam.~The recommended loan terms are 30 years at 5.5%. As security for the <br />loan, the Kenosha Trout Club will pledge membership dues backed by rate covenant <br />and other property (water rights or real estate) of value at least equal to the loan <br />amount. The loan would be funded from the Severance Tax Perpetual Base Account. <br />Staff further recommends that final approval of the loan be conditioned upon <br />acceptance of the project and the associated financial obligations by a vote of the <br />members of the Kenosha Trout Club. Regardless of the water rights ultimately purchased <br />an appraisal or written opinion of value must be provided by the Borrower as a condition of <br />obtaining the CWCB loan. <br />Action taken by the CWCB January 24, 2001 <br />Staff revised the recommended loan amount to $551,250, based on qualifying project <br />expenses of $735K. (See attached table, "Qualifying Project Expenses.") The CWCB <br />then approved the revised staff recommendation. <br />cc: Dave Echter, KTC <br />Greg Roush, P.E. <br />Linda Bassi, AGO <br />Attachment <br />C:\KenoshaTrout101 memo <br />L:\wctrans\boardmem\jan01\11d Kenosha Trout Club <br />4 <br />