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<br />Fulton Irrigation Ditch Company <br />March 17,2004 <br /> <br />Agenda Item 250. <br /> <br />Table 2, Financial Ratios (cont,) <br />Debt Service Coverage Ratio No debt 101% <br />(revenues-expenses)/debt service (strong) (average) <br />weak: less than 100% <br />average: 100% - 125% <br />strong: greater than 125% <br />Cash Reserves to Current Expense 45% 43% <br />weak: less than 50% (weak) (weak) <br />average: 50% - 100% <br />strong: greater than 100% <br />Annual Cost per Ac-Ft diverted (30,666 ac-ft) $8.50 $8.92 <br />weak: greater than $20 (strong) (strong) <br />average: $10 - $20 <br />strong: less than $10 <br /> <br />As security for the loan, the FIDC will pledge assessment revenues backed by an assessment <br />covenant, and the project itself sufficient to assure repayment of the loan, This security is in <br />compliance with CWCB Loan Policy #5 (Collateral). <br /> <br />-, <br /> <br />" <br />\ <br /> <br />. <br /> <br />Recommendation <br />Staff recommends a CWCB Small Project loan from the Severance Tax Trust Fund Perpetual . <br />Base Account in an amount up to $171,700 ($170,000 for project costs and $1,700 for the 1 % <br />loan origination fee, in accordance with Policy No. 16) to the Fulton Irrigation Ditch Company. <br />The loan is for up to 85% of the cost to rehabilitate the Company's diversion structure and to <br />repay project costs already incurred. The recommended term of the loan is 20 years at 2.8% <br />(2.9096% Annual Percentage Rate), Security for the loan will be a pledge of assessment revenues <br />backed by assessment covenant and the project itself to assure repayment of the loan, in <br />accordance with CWCB Loan Policy #5. <br /> <br />Staff further recommends that final approval of the loan be conditioned upon standard <br />contracting provisions of the CWCB, <br /> <br />4 <br /> <br />. <br />