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Silt Water Conservancy District Agenda Item 21d. July 28-29, 2003 (Updated August 4, 2003) Financial Analvsis The total estimated cost of the project is $1,133,000. Staff is recommending a Small Project Loan of $1,019,700 (90 percent of the estimate cost.) The SWCD is an agricultural water provider and the CWCB agricultural interest rate of 2.5% for a 30-year loan would apply. The CWCB loan payment (including the 10% reserve requirement) would be $53,591 per year. The SWCD will fund their portion out of cash reserves.and will cover any costs that exceed the estimated project cost. The District will increase its water share assessment as needed to provide sufficient revenues to cover the CWCB loan payment. Table 1 is a summary of the financial aspects of the project. Annual water assessments will increase from $9 to $10 per share with a Construction Fund loan of $1,019,000. The CWCB loan payment (and 10% reserve) of $53,591 represents a cost of $2.98 per acre-foot, based on average annual total diversions of 18,000 acre-feet. Table 1. Financial Summarv Project Cost CWCB Loan Amount (90% of Project CWCB Loan Payment Amount, includ Number of Landowners Current Assessment per water share Future Assessment per water share Annual Project Cost per acre-foot (Average annual total diversions: 18,0 10% loan reserve 1,133, 000 1,019,700 $53,591 305 10.00 $2.98 Credit worthiness.. The District has a 1963 repayment contract with the US Bureau of Reclamation. The annual payment is $19,200 and the outstanding balance is approximately $350,000. The District also has 2 existing CWCB loans, the first of which is in original amount of $100,000 with an annual payment of $5,725, approved in January 2000. Payments on all outstanding loans have been made as agreed, and the loans are current. The second CWCB loan is in amount of $486,000 with an annual payment of $26,400, approved March 2003. The loan contract for that loan is in process. The financial ratios for the SWCD are shown in Table 2, and indicate, with the exception of cash reserves, average ability to repay with the new projects in place. Table 2 Financial Ratios, SWCD Financial Ratio Without With the ro "ect The ro'ect Operating Ratio (revenue/expense) 128% 100% weak: less than 100% (strong) (average) average: 100% - 120% stron : reater than 120% Debt Service Coverage Ratio 180% 101 % (revenues-expenses)/debt service (strong) (average) weak: less than 100% average: 100% - 125% stron : reater than 125% Cash Reserves to Current Expense 110% 33% weak: less than 50% (strong) . (weak) average: 50% - 100% stron : reater than 100% Annual Cost per Ac-Ft (18,000 ac-ft delivered) $12.68 $16.72 weak: greater than $20 (average) (average) average: $10 - $20 stron : less than $10