PROJC02409

• Contract/PO #: C150288
• Contractor Name: Deuel and Snyder Improvement Company
• Contract Type: Loan
• Water District: 0
• County: Morgan
• Loan Projects - Doc Type: Approval Letter

Deuel and Snyder Improvement Company
March 10, 2009 (UPDATED March 18, 2009)
Page 5 of 5
TABLE 2
FINANCIAL RATIOS
Agenda Item 14a

Financial Ratio
Past 2 Years Future
w,~ project
Operating Ratio (revenues/expenses) 102% 100%
weak: <100% - avera e: 100% - 120% - sh-on : >120°/ (Average) (Average)
$48/47K $52/52K
Debt Service Coverage Ratio 12g% 106%
(revenues-expenses)/debt service (Strong) (Average)
weak: <100% - avera e: 100% - 120% - stron : >120°/ $47.7-46.3/1.1K $52.0-46.3/5.4K
Cash Reserves to Current Expenses 1 ~% 5%
weak: <50% - avera e: 50% - 100% - stron : >100°/ (Weak)*
$8/47K (Weak)*
$2.4/52K
Annual Operating Cost per Acre-Foot (4,590 AF) $10.32 $11.27
eak: >$20 - avera e: $10 - $20 - stron : <$1 (Average) (Average)
$47/4.6K AF $52K/4.6K AF
*Note on the cash reserves: It is not unusual for nonprofit ditch companies to operate with small
reserves and simply assess members e~ough to cover existing expenses.
Collateral - As security for the loan, the Company will provide a pledge of assessment revenues
backed by a rate covenant and the Project itself, which is the radial gate. This is in compliance with
CWCB Financial Policy #5 (Collateral).
Staff Recommendation (Board approved staff recommendation March 17, 2009)
Staff recommends the Board approve a loan not to exceed $90,900 ($90,000 for project costs and
$900 for the 1% Loan Service Fee) to the Deuel and Snyder Improvement Company to construct its
River Sand Gate Structure Project from the Severance Tax Trust Fund Perpetual Base Account. The
loan terms shall be 30 years at the agricultural interest rate of 2.5% per annum. Security for the loan
shall be in compliance with CWCB Financial Policy #5.
cc: Scott Kembel, President, Deuel and Snyder Improvement Company
Brent Nation, Nation Engineering Services, LLC
Susan Schneider, AGO