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<br />'.. <br /> <br />, <br />i' <br /> <br />e <br /> <br />e <br /> <br />e <br /> <br />Rio Grande and Piedra Valley Ditch Co. <br />September 22.23, 2003 <br /> <br />Agenda Item 50. <br /> <br />Credit worthiness: RGPVDC has no debt. Table 2 shows the Financial Ratios and indicates, <br />with the exception of Cash Reserves, average to strong ability to repay with the project in place. <br /> <br />Table 2. Financial Ratios <br /> <br />Financial Ratio Without With <br /> the proiect The Drolect <br />Operating Ratio (revenue/expense) 100% 100% <br />weak: less than 100% (average) (average) <br />average: 100% - 120% <br />strono': oreater than 120% <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 />strano: oreater than 125% <br />Cash Reserves to Current Expense 45% 36% <br />weak: less than 50% (weak) (weak) <br />average: 50% - 100% <br />strano: oreater than 100% <br />Annual Cast per Ac-Ft diverted (17,381 ac-ft) $1.12 $1.28 <br />weak: greater than $20 (strong) (strong) <br />average: $10 - $20 <br />stronn: less than $10 <br /> <br />As security far the loan the RGPVDC will pledge assessment revenues backed by assessment <br />covenant and other Company property (diversion and headgate structure) adequate to assure <br />repayment of the loan. This security is in compliance with CWCB Loan Policy #5 (Collateral). <br /> <br />Recommendation <br />Staff recommends a CWCB Small Project loan from the Construction fund in amount up to <br />$52,520 ($52,000 for project costs and $520 far the 1 % Loan Service Fee, in accordance with <br />CWCB Loan Policy #16) to the Ria Grande and Piedra Valley Ditch Company. The loan is for <br />up to 90% of the cost to replace 13 wooden check structures. The recommended term of the <br />loan is 30 years and the recommended interest rate is 2.5% (2.577% Annual Percentage Rate.) <br />Security for the loan will be a pledge of assessment revenues backed by assessment covenant <br />and other Company property adequate to assure repayment of the loan, in accordance with <br />eWCB 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 />~-D <br /> <br />~~~( -'T' <br />CVVL N~ ~ tr{)~ <br /> <br />cc: William McNeil, President, Rio Grande and Piedra Valley Ditch Company. <br />Laurie Clark, NRCS, Monte Vista <br />Linda Bassi, AGO <br /> <br />Attachment <br /> <br />C:IProj-NewIRGPVDC 903 memo <br />L:lboardmemlSept0315a - Rio Grande and Piedra Valley Ditch Co. <br /> <br />3 <br />