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<br /> <br />Supply Irrigating Ditch Co. <br />March 24-26, 2003. <br /> <br />Agenda Item 24e <br /> <br />Credit worthiness: SIDC has one existing debt in am.ount .of $21,045 to the First National Bank a <br />of Longmont, upon which all payments have been made as agreed. A condition of the CWCB ,., <br />loan will be that the bank subardinates its position so that the ewcs has a first position on the <br />collateral (the pledge of revenues and the project.) Table 2 shows the Financial Ratios and <br />indicates, with the exception of cash reserves, average to strong ability to repay with the project <br />in place. <br /> <br />Table 2. Financial Ratios <br /> <br />Financial Ratio <br /> <br />Without <br />the ro 'eet <br />126% <br />(strong) <br /> <br />With <br />The ro eet <br />115% <br />(average) <br /> <br />Operating Ratio (revenue/expense) <br />weak: less than 100% <br />average: 100% - 120% <br />stron : reater than 120% <br />Debit Service Coverage Ratio <br />(revenues-expenses )/debt service <br />weak: less than 100% <br />average: 100% -125% <br />stron : reater than 125% <br />Cash Reserves to Current Expense <br />weak: less than 50% <br />average: 50% - 100% <br />stron: reater than 100% <br />Annual Cost per Ac-Ft (9,500/9,745 ae-tt) <br />weak: greater than $20 <br />average: $10. $20 <br />stron : less than $10 <br /> <br />1114% <br />(strong) <br /> <br />130% <br />(strong) <br /> <br />7% 8% <br />(weak) (weak) <br />$7.50 $12.93 <br />(strong) (average) e <br /> <br />As security for the loan the SIDC will pledge assessment revenues backed by assessment <br />covenant and the project itself. This security is in compliance with CWCB Loan Policy #5 <br />(Collateral). . <br /> <br />Recommendation <br />Staff recommends a CWCB Small Project loan fro(Y1 the Construction fund not to exceed <br />$1,000,000, to the Supply Irrigating Ditch Company to rehabilitate and enlarge the Knoth <br />Reservoir. The recommended term of the loan is 30 years and the recommended blended <br />interest rate is 3% (3.079% Annual Percentage Rate.) Security for the loan will be a pledge of <br />assessment revenues backed by assessment covenant and the project itself, in accordance <br />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, including the 1% loan origination fee charged in <br />accordance with CWCB Policy #16. <br /> <br />cc: Dan Grant, Secretary-Treasurer, Supply Irrigating Ditch Campany. <br />Duane Smith, P.E., Smith Ge.otech. <br />Linda Bassi, AGO <br /> <br />Attachment <br /> <br />C:IProj-NewISupplylrrCo303memo <br />L:lboardmemlMar03\24e - Supply Irrigating Ditch C.o <br /> <br />e <br /> <br />4 <br /> <br />