C150363 Approval Letter - Laserfiche WebLink

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Page ,o Family Limited Partnership, LLLP fiber 13, 2012 (Updated September 30, 2013) of 5 TABLE 3: TOTAL PROJECT COST SUMMARY Task Cost Fulton Ditch Shares $570,000 New Cache La Poudre Irrigating Company Shares $240,000 Cache La Poudre Reservoir Company Shares $90,000 Feasibility Study $10,000 Water Engineering $7,500 Transaction Fees $7,500 Total $925,000 Agenda Item 30d The Partnership expects to purchase the identified water rights by the end of 2013. uncial Analysis Partnership qualifies for the agricultural interest rate of 1.50% for a 20 -year term. This rate is iced by 0.25% for a 20 -year term per CWCB Financial Policy #7. TABLE 4: FINANCIAL SUMMARY Total Project Cost $925,000 Partnership 10% Match $92,500 Loan Amount (90% of total cost) $832,500 Total Loan Amount (including the 1% Service Fee) $840,825 Annual Loan Payment $48,974 Annual Loan Obligation 1St 10 years (including reserve account) $53,871 Water Right Cost per Acre -Foot Yield $3,543 Cne ditworthiness: The Partnership has $378,993 in existing debt made up of one existing loan with Arr rican Ag Credit in Greely, CO. This is a 10 -year note at a fixed annual interest rate of 5.95% for 3n annual payment of $97,238. This loan will be paid off in December 2017. To more accurately ana yze the financial condition of Petrocco farming operation, Table 5 reflects the combined rev nues and expenses of both the Partnership and Corporation. TABLE 5: FINANCIAL RATIOS Co lateral: Per CWCB Financial Policy #5, the Partnership, as a private unincorporated entity, must pro vide hard collateral valued at an amount equal to or greater than 110% of the loan amount. TZA Wz ter Engineers, Inc. provided an estimated market value of the subject water rights to be within ran es from $940,000 to $1,220,500 (112% to 145% of loan amount). Average Future Financial Ratio Past 2 Years w/ Project Operating Ratio (revenues /expenses) 112% 112% eak: <100% - avera e: 100% - 120% - strong: >120% (Average) $20.91V/$18.6M (Average) $20.9M/$18.7M Debt Service Coverage Ratio 2400% 1600% (revenues- expenses) /debt service (Strong) (Strong) eak: <100% - avera e: 100% - 120% - stron > >120% ($20.9M- 18.5M) ($20.9M- 18.5M) 0.10M 0.15M Cash Reserves to Current Expenses 10% 10% (Weak) (Weak) weak: <50% - average: 50% - 100% - strong: >100% $1.9M/$18.6M I $1.8M/$18.7M Co lateral: Per CWCB Financial Policy #5, the Partnership, as a private unincorporated entity, must pro vide hard collateral valued at an amount equal to or greater than 110% of the loan amount. TZA Wz ter Engineers, Inc. provided an estimated market value of the subject water rights to be within ran es from $940,000 to $1,220,500 (112% to 145% of loan amount).