C150369 Approval Letter

• Contract/PO #: CT2015-023
• Contract/PO #: C150369
• Contractor Name: Highland Ditch Company
• Contract Type: Loan
• Water District: 5
• County: Boulder
• Loan Projects - Doc Type: Approval Letter

Highland Ditch Company
October 18, 2013 (Updated October 21, 2013)
Page 4 of 4
TABLE 3: FINANCIAL SUMMARY
Agenda Item 8a
Total Project Cost
$1,980,000
CWCB Loan Amount (100% of total Project cost )
$1,980,000
CWCB Loan Amount (Including 1% Service Fee )
$1,999,800
CWCB Annual Loan Payment
$95,971
CWCB Loan Obligation (Including 10% Reserve)
$105,568
Number of Shares
725.5
Annual Cost Per Share for Loan (with Reserve Account)
$146
Current Assessment per Share
$125
Future Assessment per Share
$271
Creditworthiness: The Company has one loan with the CWCB as summarized below:
TABLE 4: EXISTING DEBT
Lender
Original
Current Balance
Annual
Maturity Date
w/ Project
Operating Ratio (revenues /expenses)
Balance
118%
Payment
(Strong)
Collateral
CWCB
$545,400
$374,385
$34,165
2036
Assessment
(revenues- expenses) /debt service
(Strong)
(Strong)
Weak: <100% vera e: 100% - 120% strop : >120%
$825K -$642K
$34K
Revenues
TABLE 5: FINANCIAL RATIOS
Collateral: As security for the loan, the Company will pledge its assessment revenues backed by a
rate covenant and the Project itself (the Highland Ditch Company Diversion Structure). This is in
compliance with the CWCB Financial Policy #5 (Collateral).
cc: Jill Baty, Board Secretary, Highland Ditch Company
Susan Schneider /Jennifer Mele, Colorado's Attorney General Office
Attachment: Water Project Loan Program — Project Data Sheet
Future
Financial Ratio
Past 2 Years
w/ Project
Operating Ratio (revenues /expenses)
122%
118%
weak: <100% vera e: 100% - 120% strop : >1200//0
(Strong)
(Average)
$825K/$677K
$920K/$782K
Debt Service Coverage Ratio
538%
199%
(revenues- expenses) /debt service
(Strong)
(Strong)
Weak: <100% vera e: 100% - 120% strop : >120%
$825K -$642K
$34K
$920K $642K
$140K
Cash Reserves to Current Expenses
133%
115%
weak: <50% vera e: 50% - 100% strop
: >100%
(Strong)
$899K/$677K
(Strong)
$899K/$782K
Annual Operating Cost per Acre -Foot (38,000 AF)
$17.82
$20.58
eak: >$20 vera e: $10 - $20 strop : <$10
(Average)
$677K/38K AF
(Weak)
$782K/38K AF
Collateral: As security for the loan, the Company will pledge its assessment revenues backed by a
rate covenant and the Project itself (the Highland Ditch Company Diversion Structure). This is in
compliance with the CWCB Financial Policy #5 (Collateral).
cc: Jill Baty, Board Secretary, Highland Ditch Company
Susan Schneider /Jennifer Mele, Colorado's Attorney General Office
Attachment: Water Project Loan Program — Project Data Sheet