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e e e Bill Porter. Barton Porter Reservoir September 11-12,2002 Agenda Item 12b, Table 1. Financial Summa Pro'ect Cost $2,000,000 Number of Owners 1 Number of Shares of Stock N/A CWCB Loan Amount $1,000,000 CWCB Loan Pa ment includes 10% reserve $70,562 Annual Loan Cost er acre-foot New total volume: 1,100 ac-ft. $64 Credit worthiness: Bill Porter has existing debt with the First National Bank of the Rockies. in Meeker. The bank president provided a leUer of reference indicating that, over the past five years, all loan payments have been made as agreed, Table 2 shows the Financial Ratios for Bill Porter and indicates two ratios in the strong category and two in the weak category with the $1,000,000 CWCB loan in place. T bl 2 F' . I R f R h" 0 f a e mancla a lOS- ancmg' pera Ion Financial Ratio Without With The nroiect The oroiect Operating Ratio (revenue/expense) 212% 179% weak: less than 100% (strong) (strong) average: 100% -120% strano: oreater than 120% Debit Service Coverage Ratio 587% 302% (revenues-expenses)/debt service (strong) (strong) weak: less than 100% average: 100% - 125% strona: oreater than 125% Cash Reserves to Current Expense 40% 21% weak: less than 50% (weak) (weak) average: 50% - 100% strano: oreater than 100% Annual Cost per Acre-Foot (1,100 ac-ft) $12 $61 weak: greater than $20 (average) (weak) average: $10 - $20 strano: less than $10 As security for the loan Bill Porter will pledge the reservoir, all private land upon which it is located, and the water rights to fill the reservoir. He will also pledge additional real estate such that total collateral value equals or exceeds the loan amount. All values will be supported by an opinion of value from a certified appraiser, This collateral is in compliance with CWCB Loan Policy #5 (Collateral). Recommendation Staff recommends a Loan from the Small Project Account not to exceed $1,000,000 to Bill Porter to rehabilitate and enlarge the Barton Porter Reservoir. The recommended term of the loan is 20 years and the recommended lending rate is 2.5%. Security for the loan will be the reservoir, all private land upon which it is located, the water rights to fill the reservoir, and additional real estate such that total collateral value is $1,000,000. All values will be supported by an opinion of value from a certified appraiser. Staff further recommends that final approval of the loan be conditioned upon all other standard contracting provisions of the CWCB. cc: Bill Porter, 857 County Road 314, New Castle, CO 81647 Mike Jacobs p,e,. Golder and Associates, 44 Union Boulevard, Suite 300, Lakewood, CO 80228 Linda Bassi, AGO Attachment C:IWP51IProj-NewIPorter 902memo: L:lboardmemlSept02112b Sept 02 Porter 3