Laserfiche WebLink
<br />. <br /> <br />PRCC shareholders also pay PRID assessments for storage water from Vallecito Reservoir at <br />the rate of $85 plus $1.30 per irrigated acre. The average PRID assessment per acre is $2.67. <br />When the project is completed, the sum of assessments ($3.95 for PRCC and $2.67 for PRJD) <br />will be approximately $6.60 per share, or about $1.71 per acre-foot diverted. <br /> <br />Table 1 is a summary of the financial aspects of the project. Annual PRCC assessments are <br />currently $3.15 per share, and include an assessment of $0.50 for the tunnel project fund. The <br />tunnel hill project will have an annual cost of $0.33 per acre-foot of water diverted. <br /> <br />Table 1. Pine River Canal Company Financial Summary <br /> <br />Project Cost $325,550 <br />Loan Amount (75% of Project Cost) $243,700 <br />CWCB Loan Payment Amount, including 10% loan reserve $18,862 <br />Number of Shareholders 215 <br />Number of Shares of Stock 13,752.25 <br />Current Assessment per Share (includes $.50/share for tunnel project) $3.15 <br />Future PRCC Assessment per Share $3.95 <br />Annual Project Cost per acre-foot (Annual diversions: 53,000 acre-feet) $0.33 <br /> <br />Table 2 is a summary of the financial ratios for the project. All ratios (with the exception of cash <br />reserves) will be in the "Strong" category with the project and CWCB loan obligation in place. <br />Existing cash reserves will be used to help build the project, and these reserves can be rebuilt <br />in later years from strong Company revenues. <br /> <br />. <br /> <br />Table 2. Financial Ratios <br /> <br />Financial Ratio Without the project With the project <br />Operating Ratio (revenue/expense) 117% (average) 157% (strong) <br />Debit Service Coverage Ratio 188% (strong) 169% (strong) <br />(revenues-expenses)/debt service <br />Cash Reserves to Current Expense 156% (strong) 32% (weak) <br />Annual Cost per Acre-Foot $1.37 (strong) $1.71 (strong) <br /> <br />Recommendation <br />Staff recommends the Board authorize staff to contract for a loan not to exceed $243,700 to the <br />Pine River Canal Company for 75% of the costs to complete the tunnel hill project, WITHOUT <br />requiring parity with an existing Company debt of $48,247.50 payable to USDA Rural <br />Development. All terms of the loan will be the same as originally approved by the CWCB (20- <br />year loan at 3.5%.) Security remains as a pledge of revenues from assessments, a certificate of <br />deposit in amount of one annual payment, and the tunnel hill project itself. <br /> <br />cc: James w. Sutton, Secretary, Pine River Canal Co., 1720 CR 329 Ignacio, CO 81137 <br />Gary Jennings, La Plata County NRCS, 31 Suttle St., Durango, CO 81301 <br />Linda Bassi, AGO <br /> <br />. C:\WP51\Proj-New\Pine RiverNov99memo. and L\boardmem\Nov99\1Ic-nov99 <br /> <br />2 <br />