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<br />. <br /> <br />Table 1. Existing debt. <br /> <br />Lender Remaining Amount Annual Payment Maturitv Date <br />Weld Co. Bank $243,765 $243,765 4/15/04 <br />Operatina Loan <br />Weld Co. Bank $445,000 $67,000 4/02/14 <br />Term Loan <br />Metropolitan Life $850,000 $125,000 1/5/2011 <br />Metropolitan Life $295,000 $37,000 1/01/2005 <br />Farmer's State Bank $80,000 $16,000 12/31/2011 <br />Lona Term Totals $1,742,000 $245,000 <br /> <br />Payments on these debts have been made in accordance with their loan contracts. Additionally, <br />the Rothe Farm has paid GASP $49,000 per year for providing augmentation for their 17 existing <br />wells. With the new augmentation plan in-place, the GASP annual fee of $49,000 will be <br />eliminated, with the exception of a $3,500 annual administrative fee. The $49,000 that was <br />previously paid to GASP will more then cover the CWCB loan payment of $19,942.64 and any <br />annual maintenance of the system. <br /> <br />Table 2 illustrates the Financial Ratios for Mildred Rothe, based on the proposed amended loan <br />amount of $379,459, and indicates, with the exception of Cash Reserve, an average to strong <br />ability to repay the loan. <br /> <br />. <br /> <br />Financial Ratio With Amended <br /> the Droieet Droieet <br />Operating Ratio (revenue/expense) 114% 106% <br />weak: less than 100% (average) (average) <br />average: 100% - 120% <br />strona: oreater than 120% <br />Debt Service Coverage Ratio 145% 135% <br />(revenues-expenses)/debt service (strong) (strong) <br />weak: less than 100% <br />average: 100% - 125% <br />strong: greater than 125% <br />Cash Reserves to Current Expense 15% 15% <br />weak: less than 50% (weak) (weak) <br />average: 50% - 100% <br />strano: areater than 100% <br />Annual Cost per Ac-Ft diverted (8,000 ac-ft) $9.75 $9.92 <br />weak: greater than $20 (strong) (strong) <br />average: $10 - $20 <br />strong: less than $10 <br /> <br />Table 2. Financial Ratios <br /> <br />AB security for the loan the Rothe Farm has pledged 640 acres offannland, of which 501 acres are <br />irrigated, located in Section 8, T5N, R59W. This property has been appraised, and is currently <br />valued at $900,000. The value of this collateral exceeds the value of the current amended loan <br />request of $379,459. This security is in compliance with Colorado Water Conservation Board <br />Policy No.5 (Collateral). <br /> <br />. <br /> <br />3 <br />