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<br /> <br />, <br /> <br />Owl Creek Reservoir Company <br />November 20, 2001 <br /> <br />Agenda Item 22E <br /> <br />, <br /> <br />e <br /> <br />Table 3 illustrates the Financial Ratios for the Owl Creek Reservoir Company/I. Gale and <br />Valerie A, Moody. The annual income of I. Gale and Valerie A. Moody can vary from <br />year-to-year depending on the agricultural market and present land values, <br /> <br />Table 3. - Financial Ratios <br /> <br />e <br /> <br />Financial Ratios Without With <br /> The Project The Project <br />Operating Ratio (revenue/expense) <br />weak: less than 100% 86% 105% <br />average; 100%-120% (weak) (average) <br />strong: greater than 120% <br />Debit Service Coverage Ratio <br />(revenue-expenses )/debt service 72% 111% <br />weak; less than 100% (weak) (average) <br />average; 100%-125% <br />strong; greater than 125% <br />Cash Reserves to Current Expenses <br />weak: less than 50% 3% 2,5% <br />average; 50%-100% (weak) (weak) <br />strong; greater than 100% <br />Annual Cost per Acre-foot (1,200) <br />Weak: greater than $20 $0 $56 <br />Average: $10-$20 (nla) (weak) <br />Strong: less than $10 <br /> <br />/" <br /> <br />As security for the loan the Owl Creek Reservoir Company/I. Gale and Valerie A. <br />Moody will pledge the completed facility, 30,010 shares of water stock, and 200 acres of <br />real property that the reservoir will encompass, all combined being equal or greater in <br />value than the proposed loan amount of$I,125,000. Given the Reservoir Company's <br />variation in annual income, loan approval would be subject to a lender title policy <br />verifying ownership of the security by the Reservoir Company/I. Gale and Valerie A. <br />Moody, and an appraisal confirming the value of the water rights and property pledged. <br />This security is in compliance with CWCB Loan Policy No, 5 (Collateral). <br /> <br />Recommendation <br /> <br />Staff recommends a CWCB Construction Fund Loan to the Owl Creek Reservoir <br />Company/I. Gale and Valerie A. Moody in the amount of $1,125,000 for up to 90% of <br />the eligible project costs to rehabilitate Owl Creek Reservoir and to refinance debt <br />associated with portions of the project already completed. The recommended term of the <br />loan is 30-years at the CWCB agricultural rate of2002. Security for the loan will be the <br />completed facility, water rights, and real property equal to or greater than the loan <br />amount. <br /> <br />e <br /> <br />5 <br />