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<br />FL Gill H20 LLC <br />March 16-17, 2004 <br /> <br />Agenda Item 25d <br /> <br />Table 2. Financial Ratios <br /> <br />e <br /> <br />Financial Ratio Without With <br /> the Droiect The Droiect <br />Operating Ratio (revenue/expense) N/A 100% <br />weak: less than 100% (average) <br />average: 100% - 120% <br />stronQ: areater than 120% <br />Debt Service Coverage Ratio N/A 110% <br />(revenues-expenses)/debt service (average) <br />weak: less than 100% <br />average: 100% -125% <br />stronQ: Qreater than 125% <br />Cash Reserves to Current Expense N/A 40% <br />weak: less than 50% (weak) <br />average: 50% - 100% <br />strona: areater than 100% <br />Annual Cost per Ac-Ft (1,072 ac-ft well diversions) N/A $10.31 <br />weak: greater than $20 (average) <br />average: $10 - $20 <br />stronQ: less than $10 <br /> <br />As security for the loan the FGH LLC will pledge assessment revenues backed by assessment <br />covenant and 6 Private Rights in Riverside Reservoir valued at approximately $120,000. This <br />security is in compliance with CWCS Loan Policy #5 (Collateral). <br /> <br />Recommendation <br />Staff recommends a CWCS Small Project loan from the Severance Tax Trust fund Perpetual <br />Sase Account in amount up to $115,898 ($114,750 for project costs and $1,148 for the 1% <br />Loan Service Fee, in accordance with CWCS Loan Policy #16) to the FL Gill H20 LLC. The <br />loan is for up to 90% of the cost to construct a well augmentation and groundwater recharge <br />project and to purchase water rights. The recommended loan terms are 30 years at 2.5% <br />(2.58% Annual Percentage Rate), 20 years at 2.25% (2.36% Annual Percentage Rate), or 10 <br />years at 2% (2.20% Annual Percentage Rate), at the borrower's option. Security for the loan will 42 <br />be a pledge of assessment revenues backed by assessment covenant and other-Enmp""'W"' <br />property adequate to assure repayment of the loan, in accordance with CWCS Loan Policy #5. <br /> <br />e <br /> <br />Staff recommends a grant from the Feasibility Study mall Grant Account in amount of $300 to <br />cover Y. the cost of completing the feasibility study. <br /> <br />Staff further recommends that final <br />contracting provisions of the CWCS. <br /> <br /> <br />loan be conditioned upon standard <br /> <br />cc: Tom Gill, Co-Manager FL Gill H20 LLC <br />Brent Nation, P.E. <br />Linda Bassi, AGO <br /> <br />Attachment <br /> <br />C:Proj-NewIFGH LLC 0304 memo; <br /> <br />L:lboardmemIMar04\25d - FL Gill H20 LLC <br /> <br />e <br /> <br />4 <br />