BOARD00254

• Board Meeting Date: 7/28/2003
• Description: CF Section - Silt Water Conservancy District
• Board Meetings - Doc Type: Memo

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Silt Water Conservancy District
July 28.29, 2003

Agenda Item 21d.

Financial Analvsis
The total estimated cost of the project is $1,133,000. Staff is recommending a Small Project Loan of
$1,019,700 (90 percent of the estimate cost.) The SWCD is an agricultural water provider and the
CWCS agricultural interest rate of 2.5% for a 30-year loan would apply. The CWCS loan payment
(including the 10% reserve requirement) would be $53,591 per year. The SWCD will fund their
portion out of cash reserves and will cover any costs that exceed the estimated project cost. The
District will increase its water share assessment as needed to provide sufficient revenues to cover
the CWCS loan payment.

Table 1 is a summary of the financial aspects of the project. Annual water assessments will increase
from $9 to $10 per share with a Construction Fund loan of $1,019,000. The CWCS loan payment
(and 10% reserve) of $53,591 represents a cost of $2.98 per acre-foot, based on average annual
total diversions of 18,000 acre-feet.

Table 1. Financial SummarY
Proiect Cost $1,133,000
CWCS Loan Amount 190% of Proiect Cost) $1,019,700
CWCS Loan Pavment Amount, includina 10% loan reserve $53,591
Number of Landowners 305
Current Assessment oer water share $9.00
Future Assessment oer water share $10.00
Annual Project Cost per acre-foot $2.98
(Average annual total diversions: 18,000 acre-feet)

Credit worthiness: The District has a 1963 repayment contract with the US Sureau of Reclamation.
The annual payment is $19,200 and the outstanding balance is approximately $350,000. The District
also has 2 existing CWCS loans, the first of which is in original amount of $100,000 with an annual
payment of $5,725, approved in January 2000. Payments on all outstanding loans have been made
as agreed, and the loans are current. The second CWCSloan is in amount of $486,000 with an
annual payment of $26,400, approved March 2003. The loan contract for that loan is in process. The
financial ratios for the SWCD are shown in Table 2, and indicate, with the exception of cash
reserves, average ability to repay with the new projects in place.

Table 2 Financial Ratios, SWCD

Financial Ratio Without With
the Droiect The Droiect
Operating Ratio (revenue/expense) 128% 100%
weak: less than 100% (strong) (average)
average: 100% - 120%
strono: oreater than 120%
Debt Service Coverage Ratio 180% 101%
(revenues-expenses)/debt service (strong) (average)
weak: less than 100%
average: 100% - 125%
strono: oreater than 125%
Cash Reserves to Current Expense 110% 33%
weak: less than 50% (strong) (weak)
average: 50% - 100%
strona: areater than 100%
Annual Cost per Ac-Ft (18,000 ac-ft delivered) $12.68 $16.72
weak: greater than $20 (average) (average)
average: $10 - $20
strona: less than $10

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