BOARD00658

• Board Meeting Date: 1/22/2003
• Description: CF Section - South Side Irrigation Company
• Board Meetings - Doc Type: Memo

South Side Irrigation Company
January 22-23, 2003

Agenda Item 19d

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Table . Financial Summarv
Proiect Cost $80,000
Number of Shareholders 90
Number of Shares of Stock 265
CWCS Loan Amount $72,000
CWCS Loan Pavment (includes 10% reserve) $4,093
Current assessment per share $90
New assessment per share $109
Annual Loan Cost per acre-foot IAveraae diversions 1,590 ac-ft.) $2.57

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Credit worthiness: The SSIC has no existing debt. Table 3 shows the Financial Ratios for the
SSIC and indicates 3 ratios in the average category and 1 in the weak category with the
$72,000 CWCS loan in place.

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Financial Ratio Without With
the nroiect The Droiect
Operating Ratio (revenue/expense) 95% 100%
weak: less than 100% (weak) (average)
average: 100% -120%
strano': oreater than 120%
Debit Service Coverage Ratio No Debt 102%
(revenues-expenses)/debt service (strong) (average)
weak: less than 100%
average: 100% - 125%
strono: oreater than 125%
Cash Reserves to Current Expense 38% 33%
weak: less than 50% (weak) (weak)
average: 50% - 100%
strano: oreater than 100%
Annual Cost per Ac-Ft (1,590 ac-ft diverted) $15.81 $19.00
weak: greater than $20 (average) (average)
average: $10 - $20
strona: less than $10

Table 3. Financial Ratios

As security for the loan the SSIC 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 $72,000 to the South
Side Irrigation Company to rehabilitate the South Side Ditch. The recommended loan terms are
30 years at 3.1 % or 20 years at 2.9%, at the borrower's option. 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).

cc: John Whiteside, President, South Side Irrigation Co,
John Gauthiere, P.E.
Linda Bassi, AGO

e Attachment

C:Proj-NewISouth Side Irrig 0103 memo;

L:lboardmemIJanuary03\Agenda Item 19d Jan031 South Side Irrigation

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