C150288 Updated Approval Letter

• Contract/PO #: C150288
• Contractor Name: Deuel and Snyder Improvement Company
• Contract Type: Loan
• Water District: 1
• County: Morgan
• Loan Projects - Doc Type: Approval Letter

Deuel and Snyder Improvement Company
January 13, 2012 (Updated February 3, 2012)
Page 3 of 3
Consent Agenda Item 3a
Creditworthiness: The Company's current assessments are $165 /share for the standard shares (140
total shares) and $150 /Meadow Right share (21 total shares). Rates will be increased to $201/
standard share and $186 /Meadow Right share to cover the new CWCB debt service.
The Company has an existing repayment obligation of $1,100 /year to the Upper Platte and Beaver
Canal Company for the Upper Platte and Beaver Canal Company's CWCB loan for rehabilitation of
the diversion structure that benefits both companies. The loan has a maturity date of October 1,
2012 and will be paid off before this new loan is in repayment. Other than the payments to Upper
Platte and Beaver Canal Company, the Company has no debt service.
TABLE 2
FINANCIAL RATIOS
*Note on cash reserves: It is not unusual for nonprofit ditch companies to operate with small
reserves and simply assess members enough to cover existing expenses.
Collateral — The security for the loan will remain a pledge of assessment revenues backed by a rate
covenant and the Project itself. This is in compliance with CWCB Financial Policy #5 (Collateral).
cc: Scott Kembel, President, Deuel and Snyder Improvement Company
Susan Schneider, AGO
Attachment: Water Project Loan Program — Project Data Sheet
Prior to
Future
Financial Ratio
Project
w/ Project
Operating Ratio (revenues /expenses)
108%
113%
eak: <100% - vera e: 100% - 120% - stron : >120%
(Average)
$28K/$26K
(Average)
$34K/$30K
273%
158%
Debt Service Coverage Ratio (revenues- expenses) /debt service
(Strong)
eak: <100% - vera e: 100% - 120% - stron g: >120%
$28K -25K/
(Strong)
$34- 25K/$5.7K
$1.1K
Cash Reserves to Current Expenses
72%
(Average)
22%
(Weak)
eak: <50°/ - vera e: 50% - 100% - stron g: >100%
$18.6K/$26K
$6.6/$30K
Annual Operating Cost per Acre -Foot (4,590 AF)
$5.65
$6.52
vera e: $10 --:$720] - stron g: <$10
(Strong)
(Strong)
$26K/4.6K AF
I $30K/4.6K AF
*Note on cash reserves: It is not unusual for nonprofit ditch companies to operate with small
reserves and simply assess members enough to cover existing expenses.
Collateral — The security for the loan will remain a pledge of assessment revenues backed by a rate
covenant and the Project itself. This is in compliance with CWCB Financial Policy #5 (Collateral).
cc: Scott Kembel, President, Deuel and Snyder Improvement Company
Susan Schneider, AGO
Attachment: Water Project Loan Program — Project Data Sheet