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<br />, , .' .~ . 205 <br />. , <br />. Table 1. <br />Estimated Costs for CWPDA Acquisition of Bessemer Shares <br /> Commercial bank loan $207,903 <br /> CWPDA water account loan $36,689 <br /> Engineering costs $2,100 <br /> Augmentation station $7,000 <br /> Total costs $253,692 <br /> Wheeler estimates that about 39 percent of the depletions of the 16 wells resuit from <br /> pumping for irrigation. The remaining 61 percent of depletions are primarily for <br /> commercial uses. Based on these percentages, the requested loan amount is for 80.85 <br /> percent of the total project cost using 90 percent of allowable costs for irrigation wells <br /> and 75 percent for the commercial wells. A weighted lending rate of 5.33 percent was <br /> calculated based on 3.50 percent for the irrigation wells and 6.50 percent for the <br /> commercial wells. The calculations for the amount of the loan and the lending rate are <br /> shown in Table 2. <br /> l'able 2. <br /> Calculations for CWPDA Loan Amount and Lending Rate <br /> Type of Use Percent of AUowable Loan Lending Weighted <br /> Total Use Lonn % Amount Rate Lending <br />. " Rate <br /> Agricultural 39% 90% $89,045 3.50% 1.36% <br /> Commercial 61% 75% $116,064 6.50% 3.97% <br /> TOlal 100% N/A $205,109 N/A 5.33% <br /> CWPDA is requesting a loan of $205,000 to refinance the purchase of the 87.35 shares in <br /> the Bessemer Ditch at 5.33 percent for 30 years. As collateral for the Joan, CWPDA will <br /> pledge revenues from assessments and depletion charges as well as the 87.35 shares in <br /> the Bessemer Ditch. <br /> Financial Analvsis <br /> Staff has reviewed the Association's financial statements for 1997 to 1999 and the results <br /> are summarized in Table 3. CWPDA is cu,Tently in very sound financial condition with <br /> no long-term debt and adequate cash reserves. <br /> Table 3. <br /> CWPDA Financial Analysis <br /> Ratio Weak Average Strong 1991.1999 Avg. <br /> Operating Ratio <100% 100.120 % >120% 200% <br /> Debt Service Coverage Ratio < 100% 100-125% >125% N/A <br /> ash Reserves to Current Expense <50% 50-100% >100% 123% <br />. Annual Cost per Acre.Foot >$20 SlO-$20 <$1O $6.42 <br /> 3 <br />