BOARD00347

• Board Meeting Date: 1/22/2003
• Description: CF Section - Low Line Ditch Company
• Board Meetings - Doc Type: Memo

Low Line Ditch Company
January 22-23. 2003

Agenda Item 19h

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Table 2. Financial Ratios

Financial Ratio Without With
the oroiect The oroiect
Operating Ratio (revenue/expense) 110% 107%
weak: less than 100% (average) (average)
average: 100% -120%
strono: oreater than 120%
Debit Service Coverage Ratio No Debt 110%
(revenues-expenses)/debt service (strong) (average)
weak: less than 100%
average: 100% - 125%
strona: areater than 125%
Cash Reserves to Current Expense 27% 19%
weak: less than 50% (weak) (weak)
average: 50% - 100%
strano: areater than 100%
Annual Cost per Ac-Ft (6,650 ac-tt diverted) $1.92 $2.74
weak: greater than $20 (strong) (strong)
average: $10 - $20
strono: less than $10

As security for the loan the LLDC will pledge assessment revenues backed by assessment
covenant and the project itself. This security is in compliance with CWCS Loan Policy #5
(Collateral),

Recommendation
Staff recommends a CWCS Small Project Loan in maximum amount of $94,500 to the Low Line
Ditch Company to construct a series of recharge ponds and an augmentation well. The
recommended term of the loan is 30 years at 2.75% or 20 years at 2.5% at the borrower's
option. The security for the loan will be in compliance with CWCS Loan Policy #5.

Staff further recommends that final approval of the loan be conditioned upon all other standard
contracting provisions of the CWCS, including loan Policy #16 (Loan Service Charges).

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cc: Steve Kaiser, Low Line Ditch Co,
Brent Nation, P.E,
Linda Bassi, AGO

Attachment

C:Proj-NewlLowLine 0103 memo;

L:\boardmemIJanuary03\Agenda item 19h Jan03\ Low Line Ditch

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