C150370 Approval Letter

• Contract/PO #: CT2015-008
• Contract/PO #: C150370
• Contractor Name: Left Hand Ditch Company
• Contract Type: Loan
• Water District: 5
• County: Boulder
• Loan Projects - Doc Type: Approval Letter

Left Hand Ditch Company
October 18, 2013 (Updated October 21, 2013)
Page 7 of 7
Agenda Item 8b
Creditworthiness: The Company has two existing loans with the CWCB as summarized below:
TABLE 5: EXISTING DEBT
Contract
Number
Original
Balance
Current Balance
Annual
Payment
Maturity Date
Collateral
weak: <100% 1 vera e: 100% - 120% stron : >1200/o
(Average)
(Weak/Average)
$319K/$287K
Left Hand Valley
C153804
$560,000
$384,027
$33,875
June 1, 2029
Dams and
weak: <l00% vera e: 100% - 120% t stron : >1206/o
$319K -$253K
$34K
$269K
Cash Reserves to Current Expenses
189%
Reservoirs
weak: <50% vere. a 50% - 100% trop : > 100°/
(Strong)
$541K/$287K
(Strong)
$541K/$522K
Annual Operating Cost per Acre -Foot (22,700 AF)
TBD
Pledge of
C150336
$1,157,157
$1,157,157
$54,918
(Note: this project is not
substantially complete
assessment
as of 10/1/13)
revenues
TABLE 6: FINANCIAL RATIOS
Financial Ratio
Past 2 Years
Future
w/ Project
Operating Ratio (revenues /expenses)
111%
100%0)
weak: <100% 1 vera e: 100% - 120% stron : >1200/o
(Average)
(Weak/Average)
$319K/$287K
$522K/$522K
Debt Service Coverage Ratio
194% (2)
100% (Average)
(revenues- expenses) /debt service
(Strong)
$522 -$253K
weak: <l00% vera e: 100% - 120% t stron : >1206/o
$319K -$253K
$34K
$269K
Cash Reserves to Current Expenses
189%
104%
weak: <50% vere. a 50% - 100% trop : > 100°/
(Strong)
$541K/$287K
(Strong)
$541K/$522K
Annual Operating Cost per Acre -Foot (22,700 AF)
$12.64
$23.01
eak: >$20 vera e: $10 - $20 ston r :<$I
(Average)
$287K/22.7 AF
(Weak)
$522K/22.7 AF
(1) Assumes a future assessment of $31 1share.
(2) Only includes C153804 debt service as C150336 is not yet in repayment.
Collateral: As security for the loan, the Company will pledge its assessment revenues backed by a
rate covenant and the Left Hand Valley Dam and Reservoir. This is in compliance with the CWCB
Financial Policy #5 (Collateral).
cc: Robert Crifasi, Mutual Irrigation Ditch Company Consultant
Terry Plummer, VP of Operations, Left Hand Ditch Company
Susan Schneider /Jennifer Mele, Colorado's Attorney General Office
Attachment: Water Project Loan Program — Project Data Sheet