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� <br />Overiand Ditch and Reservoir Company Agenda Item 6a <br />July 12, 2005 <br />Page 5 of 5 <br />Table 2 shows the Financial Ratios for the Company to be Average with the exception of cash <br />reserves. The share assessment is estimated to increase from $12.78/share to $20.57/share or as <br />necessary to cover all loan obligations. This share price will be comprised of $6.00/share for operations <br />and maintenance and $14.57/share for debt service. <br />Table 2. Financial Ratios <br />Financial Ratio Without Project With Project <br />Previous Years Future Years <br />Operating Ratio (revenues/expenses) 101 % 101 % <br />weak: <100% - avera e: 100% - 120% - stron :��>120% (Average) (Average) <br />Debt Service Coverage Ratio 100% 101 % <br />(revenues-expenses)/debt service <br />weak: <100% - avera e: 100% - 120% - stron : >120% (Average) (Average) <br />Cash Reserves to Current Expenses 8% 5% <br />weak: <50% - average: 50% - 100% - stron : >100% (Weak) (Weak) <br />Annual Operating Cost per Acre-Ft Delivered* $7.00 $12.10 <br />eak: >$20 - avera e: $10 - $20 - stron : <$10 (Strong) (Average) <br />oan o icy #5 (Collateral). The CWCB loans that the Company currently holds are secured <br />by .............. - ; S'�ilCL�l �'�zL �� L� <br />�� � �� <br />{� <br />, C ti _ `� � ��,�. � <br />Staff Recommendation �t� ����'� � �' � �'�` � � � S-� � YU � � � � <br />� � ��- � �� `� �< < <br />� -�z ��) <br />Staff recommends a loan not to exceed $1,141,300 ($1,1 0,000 for project costs and $11,300 o�the��� <br />1% Loan Service Fee) to the Overland Ditch and Reservoir Company for engineering and construction f � <br />costs associated with the Overland Reservoir Rehabilitation Project, from the Severance Tax Trust �� <br />Fund Perpetual Base Account. The terms shall be based on the current agricultural interest rate of � <br />2.5% per annum for a 30-year loan. Final approval of the loan shall be conditioned upon all standard ��� �. � <br />contracting provisions of the CWCB Loan Program. Security for the loan shall be collateral in <br />compliance with CWCB Loan Policy #5. <br />, , ,� <br />Email copy: Pete Kasper, Company President ���; �;� ��-��. (�L� �C �.� ��� ��E ��,(� �.(�� ��•� � <br />Bruce Marvin PE, Western Engineers Inc. �1 <br />Amy Stengel, AGO <br />' Calculation based on an average of 17,000 acre-feet delivered by the company (including direct flow and stored water) <br />V1/ �^'�'`~ <br />Collateral: As security for the CWCB loan the Comp y will pledge assessment revenue� backed by <br />an assessment covenant and the Overland Reservo�__ stora�e rights. Based on recent sales of <br />Company shares, the market value has been de'�ermined to be befinreen $670 and $830 per acre-foot. <br />This equates to a reservoir value of �4 � million tn 6.0 million. This security is in compliance with CWCB <br />L P I' <br />Attachment: Water Project Construction Loan Program — Project Data Sheet <br />