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<br />. <br /> <br />. <br /> <br />. <br /> <br />Upper Platte and Beaver Canal Company <br />March 21-22, 2002 <br /> <br />Agenda Item 10. <br /> <br />Table 1 is a summary of the financial aspecls of the project. A CWCB Loan of $83,000 would <br />have an annual payment of $10,297 (including the 10% reserve requirement) at the loan terms <br />of 2,25% for 10 years. This represents $0.34 per acre-foot, based on average diversions of <br />30,000 acre-feet. <br /> <br />Table 1. Financial Summary <br /> <br />Project Cost $95,000 <br />Number of Shareholders 100 <br />Number of Shares of Stock 1187 <br />CWCB Loan Amount $83,000 <br />CWCB Loan Pavment (includes 10% reserve) $10,297 <br />Current Assessment oer share $65.00 <br />New Assessments oer share (estimate) $73.50 <br />Annual Loan Cost per acre-foot (AveraQe diversions: 30,000 acre-feet.) $0.34 <br /> <br />Credit worthiness: The UPBCC has no existing debt. Table 2 shows the Financial Ratios for <br />the UPBCC and indicates, with the exception of cash reserves, average to strong ability to <br />repay the $83K CWCS loan with the project in place. <br /> <br />Table 4, Financial Ratios <br /> <br />Financial Ratio Without With <br /> the nroiect the proiect <br />Operating Ratio (revenue/expense) 125% 123% <br />weak: less than 100% (strong) (average) <br />average: 100% - 120% <br />strono-: oreater than 120% . <br />Debit Service Coverage Ratio No debt 210% <br />(revenues-expenses)/debt service (strong) (strong) <br />weak: less than 100% <br />average: 100% - 125% <br />strana: areater than 125% <br />Cash Reserves to Current Expense 4% 4% <br />weak: less than 50% (weak) (weak) <br />average: 50% - 100% <br />strana-: areater than 100% <br />Annual Cost per Acre-Foot (30,000 AF) $ 3.17 $3.50 <br />weak: greater than $20 (strong) (strong) <br />average: $10 - $20 <br />strona: less than $10 <br /> <br />As security for the loan the UPBCC will pledge assessment revenues backed by assessment <br />covenant and the project itself. This security is in compliance with CWCB Loan Policy No.5 <br />(Collateral). <br /> <br />,~ <br />~ <br /> <br />Recommendation <br />Staff recommends that the CWCS find that the Upper Platte and Beaver Canai Company is <br />eligible for a loan from the Emergency Infrastructure Repair Account because: "the project is <br />necessary to avoid unreasonable risk of injury or damage to human health or well-being or to <br />property or crops, and because the emergency condition is not the result of negligence in the <br />operation or maintenance of the infrastructure." <br /> <br />3 <br />