Laserfiche WebLink
<br />; <br /> <br />e <br /> <br />e <br /> <br />e <br /> <br />Highland Ditch Company <br />November 8, 2005 <br />Page 4 of 4 <br /> <br />Agenda Item 23a <br /> <br />Table 2. Financial Ratios <br /> <br />Financial Ratio Without Project With Project <br />Previous Years Future Years <br />Operating Ratio (revenues/expenses) 100% 104% <br />I weak: <100% ~ -I average: 100% - 120% I-Istrong: >120%1 (Average) (Average) <br />Debt Service Coverage Ratio 40% <br />(revenues-expenses)/debt service N/A <br />I weak: <100% I- I averaoe: 100% - 120% I- I strono: >120%1 (Weak) <br />Cash Reserves to Current Expenses 73% 66% <br />I weak: <50% 1- I average: 50% - 100% I-I strong: >100%1 (Average) (Average) <br />Annual Operating Cost per Acre-Ft Delivered" $11.10 $12.00 <br />!weak: >$20 I- I average: $10 - $20 I-I strong: <$1~ (Average) (Average) <br /> <br />* Calculation based on an annual average of 32,550 acre-feet delivered by the Company <br /> <br />Collateral: As security for the CWCB loan, the Company will pledge assessment revenues backed <br />by an assessment covenant and the physical structures associated with the Project. This security is <br />in compliance with CWCB Loan Policy #5 (Collateral). <br /> <br />Staff Recommendation <br /> <br />Staff recommends a loan not to exceed $545,400 ($540,000 for project costs and $5,400 for the 1 % <br />Loan Service Fee) to the Highland Ditch Company, from the Severance Tax Trust Fund Perpetual <br />Base Account for engineering and construction costs associated with the Foothills Reservoir Dam <br />Repair Project, and to pay expenses already incurred. The terms of the loan shall be a 20-year loan <br />at 2.25% per annum. Final approval of the loan shall be conditioned upon all standard contracting <br />provisions of the eWCB Loan Program. Security for the loan shall be collateral in compliance with <br />CWCB Loan Policy #5. As a condition of the loan the staff further recommends that the Borrower <br />shall use the first loan disbursement under this Contract to repay the total principal and interest due <br />on the bridge loan. <br /> <br />Email copy: <br /> <br />Robert Schlagel President c/o Jill Saty, Office Manager <br />Duane Smith, PE. Smith Geotechnical <br />Amy Stengel, AGO <br /> <br />Attachment: Water Project Construction Loan Program - Project Data Sheet <br />