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Platte Valley Irrigation Company Agenda Item 27c <br /> November 19-20,2014 Board Meeting(Updated November 21, 2014) <br /> Page 4 of 4 <br /> some of the C-BT units held by the Company in anticipation of the future Platte Valley Reservoir No. 1 <br /> project. Shareholders agreed to temporarily use this account to provide immediate Project funding, <br /> provided the Company seek repayment of the funds for the Project and pay back the capital <br /> improvement account so that all shareholders share in the Project cost according to their pro-rata <br /> share ownership. The Board determined that a loan from the CWCB is the most fiscally responsible <br /> method for repayment of the funds. Table 3 provides a summary of the Project's financial aspects. <br /> TABLE 3: FINANCIAL SUMMARY <br /> Total Project Cost $820,000 <br /> Borrowers Contribution $82,000 <br /> CWCB Loan Amount $738,000 <br /> CWCB Loan Amount (Including 1% Service Fee) $745,380 <br /> CWCB Annual Loan Payment $33,281 <br /> CWCB Annual Loan Obligation (15t Ten Years) $36,609 <br /> Number of Shares 344 <br /> Annual Loan Obligation per Share $106 <br /> Current Assessment per Share $500/share <br /> Future Assessment per Share $600/share <br /> Cost of Project per AF of Storage (400 AF) $2,050/AF <br /> Creditworthiness: The Company has no existing debt. The Company was previously approved for a <br /> CWCB loan in 2006 for the Platte Valley Reservoir No. 1 project. Loan funds were disbursed for <br /> engineering but ultimately construction did not move forward as construction cost became too <br /> prohibitive. The Company paid in full the loan balance of$189,393 in May 2014. <br /> TABLE 4: FINANCIAL RATIOS <br /> Financial Ratio Past 3 Years Future <br /> w/Project <br /> Operating Ratio (revenues/expenses) 115% 114% <br /> weak: <100% - average: 100% - 120% - strong: >120%I (Average) (Average) <br /> $545K/$472K $579K/$509K <br /> Debt Service Coverage Ratio 290% <br /> (revenues-expenses)/debt service N/A (Strong) <br /> weak: <100%1- average: 100% - 120% - strong: >120%I ($579K-$472K) <br /> $37K <br /> Cash Reserves to Current Expenses 78% 56% <br /> weak: <50%1- average: 50% - 100% - strong: >1001 (Average) (Average) <br /> $366K/$472K $284K/$509K <br /> Annual Operating Cost per Acre-Foot (27,898 AF) $17 $18 <br /> (weak: >$20 1- average: $10- $20 - strong: <$10 (Average) (Average) <br /> $472K/28K AF $509K/28K AF <br /> Collateral: Security for this loan will be a pledge of the Company's assessment revenues backed by an <br /> assessment covenant, and the Project itself (outlet structure). This is in compliance with the CWCB <br /> Financial Policy#5 (Collateral). <br /> cc: Kevin Schmidt, President, Platte Valley Irrigation Company <br /> Susan Schneider/Jennifer Mete, Colorado Attorney General's Office <br /> Attachment: Water Project Loan Program - Project Data Sheet <br />