C150252 Apporval letter

• Contract/PO #: C150252
• Contractor Name: Henrylyn Irrigation District
• Contract Type: Loan
• Water District: 0
• County: Weld
• Loan Projects - Doc Type: Approval Letter

Henrylyn Ircigation District
July 11-12, 2007
Agenda Item 15a
CWCB Loan Amount $2,162,700
CWCB Loan Pa ment does not include a 10% reserve $99,915
Current Le er acre HID - 2007 $18.00
Re uired New Le er acre HID - with CWCB loan $21.00
Annual Cost of Loan er AF delivered HID - 13,850 ac-ft. $7.21
Creditworthiness: HID current has a total outstanding long-term debt of $624,863. The HID has
two existing loans with CWCB. The first is a 1980 loan for $653,000 for the repair of flood damage
to the Prospect and Lord Reservoirs, with a remaining principal amount of $337,240 and annual
payments of $28,249 through 2021 (40-year loan). Collateral for this loan is a conveyance of an
individual 1/10 interest in Prospect Reservoir. The second is a 1981 loan for $260,000 for the
purpose of repair of damages to the Horse Creek Reservoir Dam, with a remaining principal amount
of $164,220 and an annual payment of $15,153 through 2022 (40-year loan). Collateral for this
loan is a conveyance of an undivided'h interest in the Horse Creek Reservoir. HID is current on its
CWCB loan obligations. Also, HID also has an interest-free $1,000,000 loan with the U.S. Bureau
of Reclamation for the purpose of concrete lining its ditch laterals and canals, with a remaining
principal amount of $79,288 and an annual payment of $32,800 through 2008. In addition, HID has
a$75,861 loan with CNH Capital for purchase of an excavator, with a remaining principal amount of
$44,115 and an annual payment of $20,513 through 2009. Collateral for this loan is the excavator
itself. The last finro loans will be retired prior to the start of CWCB loan repayment (2010).
Table 2 shows the Financial Ratios for HID and indicates overall average to strong ability to repay
the $2,162,700 CWCB loan, with annual HID assessment levy raised from $18 to $21 per acre.
Table 2. Financial Ratios
Financial Ratio Without Wifh project
the project Future Year
Aver. 2005-06 2010+
Operating Ratio (revenue/expense)
weak: less than 100% 100% 118%
average: 100% - 120% (average) (average)
strong: greater than 120%
(808K/808K 1, 037K/881 K
Debt Service Coverage Ratio
(revenues-expenses)/debt service 441 % 109%
weak: less than 100% (strong) (average)
average: 100% - 125%
strong: greaterthan 125% 1,224K-808W94K 1,037K-881K/143K
Cash Reserves to Current Expense
weak: less than 50% 162% 124%
average: 50% - 100% (St~Oflg) (StPOflg)
strong: greater than 100%
1,462W903K 1,268W1,024K
Annual Operating Cost per Acre-Ft. (19,175 AF)
weak: greater than $20 $47 $53 _.
average: $10 - $20 (we~k) (weak)
strong: less than $10
903K/19K 1,024K/19K
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