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<br />Kern Reservoir and Ditch Company <br />September 11-12, 2002 <br /> <br />Agenda Item 12a. <br /> <br />Table 3. Financial Ratios <br /> <br />Financial Ratio Without With <br /> The Droiect The Droiect <br />Operating Ratio (revenue/expense) 100% 107% <br />weak: less than 100% (average) (average) <br />average: 100% -120% <br />strono: areater than 120% <br />Debit Service Coverage Ratio No debt 110% <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 50% 20% <br />weak: less than 50% (average) (weak) <br />average: 50% - 100% <br />strona: areater than 100% <br />Annual Cost per Acre-Foot (2,600 ac-ft) $ 18 $33 <br />weak: greater than $20 (average) (weak) <br />average: $10. $20 <br />strano: less than $10 <br />Monthly Residential Water Bill (Municipal) $45 $45 <br />weak: greater than $60 (average) (average) <br />average: $30-$60 <br />strona: Less than $30 <br /> <br />As security for the loan the KRDC 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 Loan from the Small Project Account not to exceed $1,000,000 to the Kern <br />Reservoir and Ditch Company to cover up to 75% of the costs to rehabilitate the Kern <br />Reservoir. The recommended loan terms are 30 years at 5,1% or 20 years at 4.8%, at the <br />borrower's option, Security for the loan will be a pledge of assessment revenues backed by <br />assessment covenant and the project itself, <br /> <br />Staff further recommends that final approval of the loan be conditioned upon all other standard <br />contracting provisions of the CWCB, <br /> <br />cc: Wayne Miller, President, Kern Reservoir and Ditch Co., 2319 10'h Street, Windsor, CO 80550 <br />JUlie Chester, Hall-Irwin Corp., PO Box 2150, Greeley, CO 80632 <br />Colby Hayden, P.E., Rock Mt. Consultants Inc, 1900 south Sunset, Suite 1-t, Longmont, CO 80501 <br />Linda Bassi, AGO <br /> <br />Attachment <br /> <br />C:\WP51\Proj-New\Kern 902memo; <br /> <br />L:\boardmem\Sept02\ 12a Sept 02 Kern <br /> <br />4 <br /> <br />. <br /> <br />. <br /> <br />, <br />