C150334 Approval Letter

• Contract/PO #: CT2015-044
• Contract/PO #: C150334
• Contractor Name: McDonald Ditch Company
• Contract Type: Loan
• County: Rio Grande
• Loan Projects - Doc Type: Approval Letter

McDonald B tch Company Agenda Item 28b
September 1 , 2013 (Updated September 30, 2013)
Page 4 of 4
TABLE 3: FINANCIAL RATIOS
T e " F ture with Project" revenue figures include a $250 1share assessment increase. Actual assessment increases
may be lc wer based on a reduction of annual maintenance expenses.
Collate l: In the original loan approval the CWCB required the Company to pledge its assessment
revenue and its water rights as collateral. The water rights are estimated to be valued in excess of
$500,00 , far exceeding the value of the loan request. The Company is requesting that this approval
require pledge of assessment revenues backed by a rate covenant and the Project itself (diversion dam
and hea gate structure). This is in compliance with CWCB Financial Policy #5 (Collateral).
cc: ames Hart, President, McDonald Ditch Company
tusan Schneider /Jennifer Mele, Colorado Attorney General's Office
Water Project Loan Program — Project Data Sheet
Future
Financial Ratio
2009-2012
w/ Project'
Open ting Ratio (operating revenues /operating expenses)
189%
104%
(average)
(average)
weak: 100% - avera e: 100% - 120% - strong: >120%
$8.5K/$4.5k
$12.1K/$11.6
Debt Service Coverage Ratio
107%
(total a gible revenues - operating expenses) /total debt service
No Current Debt
(average)
weak: f 100% - avera ge: 100% - 120% - strong: >120%
($12.1K- $4.5K)/$7.1K
622%
241%
Cash Reserves to Current Expenses
(strong)
(strong)
Leak <50% I - I average: 50% - 100% - stron : >1000/0
$28K/$4.5K
$28K/$11.6K
Annu 1 Operating Cost per Acre -Foot (based on 5,018 AF)
$0.90
$2.38
[wetk: >$20 - avera e: $10 - $20 - strong: <$1
(strong)
(strong)
$4.SK/SK AF
$11.9K/5K AF
T e " F ture with Project" revenue figures include a $250 1share assessment increase. Actual assessment increases
may be lc wer based on a reduction of annual maintenance expenses.
Collate l: In the original loan approval the CWCB required the Company to pledge its assessment
revenue and its water rights as collateral. The water rights are estimated to be valued in excess of
$500,00 , far exceeding the value of the loan request. The Company is requesting that this approval
require pledge of assessment revenues backed by a rate covenant and the Project itself (diversion dam
and hea gate structure). This is in compliance with CWCB Financial Policy #5 (Collateral).
cc: ames Hart, President, McDonald Ditch Company
tusan Schneider /Jennifer Mele, Colorado Attorney General's Office
Water Project Loan Program — Project Data Sheet