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<br />r <br />e <br /> <br />e <br /> <br />e <br /> <br />Jackson Lake Reservoir and irrigation Co. <br />November 22-23.1999. Agenda Item 13b. <br /> <br />Table 1. Financial Summary <br /> <br />Project Cost $374,000 <br />Loan Amount (90% of Project Cost) $336,600 <br />CWCB Loan Payment Amount, including 10% loan reserve $20,577 <br />Number of Shareholders 90 <br />Number of Shares of Stock 1550 <br />Current Assessment per Share $60 <br />Future Assessment per Share $73.28 <br />Annual Project Cost per acre-foot $0.61 <br />(Average annual diversions: 34,000 acre-feet) <br /> <br />Water is used by the shareholders for agricultural purposes. The JLRIC would qualify for the <br />CWCB Agricultural Lending rate. The JLRIC has no existing debt. <br /> <br />Table 2. Financial Ratios <br /> <br />Financial Ratio Without the project With the project <br />Operating Ratio (revenue/expense) 117% (average) 140% (strong) <br />- <br />Debit Service Coverage Ratio No debt (strong) 171% (strong) <br />(revenues-expenses)/debt service <br />Cash Reserves to Current Expense 43% (weak) 43% (weak) <br />Annual Cost per Acre-Foot $2.59 (strong) $3.34 (strong) <br /> <br />As security for the loan the JLRIC will pledge revenues from assessments, one payment in a <br />certificate of deposit account to be held by the State, and the project itself. <br /> <br />Recommendation <br />Staff recommends a loan not to exceed $336,600 to the Jackson Lake Reservoir and Irrigation <br />Company for up to 90% of the costs to rehabilitate the Company's diversion structure on the <br />South Platte River. The recommended term of the loan is 30 years and the lending rate would <br />be that rate approved by the CWCB for Agricultural borrowers in 2000. Security for the loan will <br />be a pledge of revenues from assessments, one payment in a certificate of deposit account to <br />be held by the State, and the project itself. <br /> <br />Staff further recommends that final approval of the loan be conditioned upon acceptance of the <br />project and the associated financial obligations by a vote of the shareholders of the Company, <br />and all standard CWCB contracting provisions. <br /> <br />cc: Edward E. Fritzler, President Jackson Lake Reservoir & Irrigation Co. <br />Jack Odor, P.E. <br />Linda Bassi, AGO <br />Attachment <br /> <br />C:\WP51\Proj-NewIJacksonLake Diversion1199 <br />L:\boardmem\nov99\ 13b-Nov99 <br /> <br />3 <br />