C150316 approval ltr

• Contract/PO #: C150316
• Contractor Name: Trinchera Irrigation Company
• Contract Type: Loan
• Water District: 35
• County: Costilla
• Loan Projects - Doc Type: Approval Letter

Trinchcra lrrigation Company
March 2{, 201 l
Pagc 4 of 5
Agenda item 25a
• Mountain Home Reservpir Dam Praject, this $1,Q00,004 loan was approved in 1992 and has
a balance of $345,614, with $18,623 due annually. The maturity date of the loan is
September 2034. This Ioan was secured by a pledge of assessmeat revenues and the
Mountain Home Reservair.
• Smith Dam Repair Project, this $606,00� loan was approved in 2010 and has a balance of
$524,553, with $29,927 due annually ($32,920 with 10% debt service funding}, The
maturity da.te of the Ioan is September 1, 2035. This loan was secured by a pledge of
assessment revenues, Smith Reservoir and correspondtng water stnrage rights.
In September 2Q09, the Company was approved for a$200,OOU Water Supply R�serve Account
grant ($150,000 from the state wide funds and $50,000 from the Rio Grande basin fitnc�s) for the
"Sangre de Cristn Trinchera Diversion Canal Restoration Project". I� ]vovember 2009, the
Campany applied for an additional $54,OQQ grant frorn the Rio Grande Basin for a project titled
"Shartfall Request Sangre de Cristo Trinchera Diversion Cana1 Restoration." This request was
approved by the CWCB and the contract was executed in March 2010.
�reRi.F. d� FiNANC.iAi. RATIOS
- - -- Future
Fin�nciat R.a�io 200'!•20Q9 w/ Project
C)�rating Ratio (operating revenues/current expenses) �09% 101%
weak: <100% - �averag� e•� . l 00% - 120%0 - stron : > 120°/ (Average) (Average)
$284K/$260K $297K!$295K
Debt Service Coverage Ratio �gp%* 103%**
(operatin� revenues-operating expenses�debt service �5���� (Average)
weak: <1(}U% - ave e: 1Q0%- 120% - stron :>l20 t$284K-S230K�S30K ($297K-S230K�/S65K
Cash Reserves t Cw rent Expenses 25% 37%
� weak: <50% - average: SO%- 100%� stron 1> 00°/ (W ��� (We
�„� " ��..��� $64KJ$260K $i09KJ$295K
Annual Operating Cost per Acre-Foot (based an 27,600 AF) $ $��'��'
�� eak: >$2U - avera e: $10 - $20 - stron : <$1 EStrong) (A�rera�e)
$264K/26,'l4U $29SK/26,704
* Past Debt Service includes the 1977 and 19921oans ($I1,238 +�18,623 =$29,861}
'`* The /977 loan was pa�d off in April 2009; therefore, Future Debt Service includes the 1992 artd 2010
loans, in crdditiart to this loan ($1 f3, b23 �- �3Z, 920 �.� 13, 678 =�6�,..�21 j
Collateral: As security far the taan, the Company will pled�e assess�ment revenues backed by a
rate covenant and the �ar�atld #2 CanaI water ri�hts as listed in Table i. This is i� complianc� with
the GWCB Financial Policy #5 (Co�latera�).