C150063 Misc Documents

• Contract/PO #: C150063
• Contractor Name: Jackson Lake Reservoir & Irrigation Company
• Contract Type: Loan
• Water District: 1
• County: Morgan
• Bill Number: SB 94-29
• Loan Projects - Doc Type: Contract Documents

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to $7.00 which is also considered acceptable. As collateral for the loan, the Company is
offering a pledge of revenues and shares of stock in the Company with an estimated value
• of $1.0 million.
Jackson Lake Reservoir and Irrigation Co. Financial Analysis
Ratio
Weak
Avera a
Strong
1997 -1999 Av .
With Loan
Aerating Ratio (1)
<100 %
100-120%
>120%
101%
198%
Debt Service Coverage
Ratio (2)
<100%
100 -125%
>125%
N/A
110%
Cash Reserves to Current
Expense
<50%
50 -100%
> 100170
23%
4.0%
Annual Cost per Acre -Foot
>$20
$10 -$20
<$10
$3.44
1 $7.00
(1) Operating revenue/operating expense
(2) (Total eligible revenues - operating expense) /total debt service
Staff did not conduct the type of financial analysis set forth above for the loan requested
by Parks. The financial feasibility of the Parks' loan is based upon the collateral offered
which is the balance in the special account at the State Treasurer's Office and the pledge
of any and all other revenues to cover loan payments over the term of the loan.
The Wheeler report included an economic feasibility analysis of the proposed project.
Using both agricultural and recreational benefits, the report indicated a benefit/cost ratio
of about 30 (annual benefits may be about 30 times greater than annual costs).
SConclusion
The loan to the Division of Parks and Outdoor Recreation (State Parks) presents a new
challenge for the Board. We have not been asked to loan funds to other state agencies to
repair water resource infrastructure projects and have no policy that expressly addresses
this situation.
Given the facts:
• State Parks and the Jackson Lake Reservoir and Irrigation Company have been
working together to rehabilitate the dam at Jackson Lake;
• The Jackson Lake Reservoir and Irrigation Company has re- authorized its $1 million
dam repair but cannot afford to borrow the entire amount necessary to return the dam
to a safe condition;
• State Parks cannot afford to complete its agreement with the reservoir company
without this loan;
• State Parks is a another DNR agency;
• State Parks is establishing a $900,000 account with the state treasurer to finance its
loan repayment obligation;
• Due to General Fund constraints imposed by voters and constraints on LOCO funds
caused by obligating future revenues for land acquisition projects, State Parks would
be forced to forego planned capital construction project without the loan;
• State parks are enjoyed by millions of Coloradoans statewide; therefore,
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