Laserfiche WebLink
<br />Glenn D. Toyne - Well Augmentation Project <br />March 25-26, 2003 <br /> <br />Agenda Item 24d <br /> <br />Table 1. Financial Summary <br /> <br />. <br /> <br /> <br />$ 115,000 <br />$75 600 <br />$4,107 <br />$1.17 <br /> <br />Creditworthiness: As of February 6, 2003, GOT Iists'assets totaling $1.2 million and liabilities of <br />$475,990, and outstanding loans for real estate totaling $306,050, and farm equipment, totaling <br />$61,150. Annual debt payment on these loans total is approximately $54,000. <br /> <br />Table 2 shows the Financial Ratios for the GOT and indicates, with the exception of cash reserves, <br />strong ability to repay the $75,600 CWCS loan. <br /> <br />Table 2. Financial Ratios <br /> <br />Financial Ratio Without With project <br /> the project Future Years <br />Operating Ratio (revenue/expense) , <br />weak: less than 100% 158% 154% <br />average: 100% - 120% (strong) (strong) <br />strono~: areater than 120% <br />Debit Service Coverage Ratio <br />(revenues-expenses)/debt service 190% 167% <br />weak: less than 100% (strong) (strong) <br />average: 100% -125% <br />strono: oreater than 125% , <br />Cash Reserves to Current Expense <br />weak: less than 50% 15% 10% <br />average: 50% - 100% (weak) (weak) <br />strono: oreaterthan 100% <br />Annual Operating Cost per Acre-Fl. (1100 ac-f!) <br />weak: greater than $20 $19.72 $20 <br />average: $10 - $20 (aver.) (aver) <br />strong: less than $10 <br /> <br />. <br /> <br />Collateral - As security for the loan the GOT will pledge a security interest in real estate, 160 acres <br />offarm ground located in NW Y. of Sec. 26, T11 N, R~7W. The land consists of 127 acres flood <br />irrigated (2 wells) and 33 acres of dryland, The 127 'acres of irrigated land is estimated to be worth <br />$1000 per acre, and at this level proposed collateral would be sufficient to secure the $75,600 loan. <br />During the contract process supporting documentation of land values, based on current land use, <br />will be submitted by a Colorado Certified GeneralAppraiser. The collateral would be in compliance <br />with revised CWCS Loan Policy #5 (Collateral). <br /> <br />Recommendation <br /> <br />Staff recommends a ewcs Small Project Loan not to exceed $75,600 to Glen O. Toyne from the <br />Construction Fund to construct a system of wells and recharge pond to replace out-of-priority irrigation <br />well depletions. The recommended term of the loan is 30 years and the recommended lending rate is <br />2.75% per annum. Security for the loan will be agricultural real estate with a total collateral value of . <br />$75,600. The real estate value will be supported by documentation from a Colorado Certified General <br />Appraiser, and all necessary permits and easements must be obtained. <br /> <br />Page 40f 6 <br />