BOARD01619

• Board Meeting Date: 5/19/2003
• Description: CF Section - New Loans - Pine River-Bayfiled Ditch Company - Siphon Replacement Project
• Board Meetings - Doc Type: Memo

Pine River - Bayfleld Ditch Company
May 19-20 2003

Agenda Item 18c

increases in the base assessment rate from $7.25 to $12.80 per share. At the annual meeting in
February 2003, shareholders voted unanimously to increase assessments to repay the loan.

Table 1. Financial Summary

$267,000
51
1952
$200,000
$10,865
$7,25
$12.80
$1.22

: 8,866 ac-ft.

Creditworthiness: The PRBDC has no outstanding loans.

Table 2 shows the Financial Ratios for the PRBDC and indicates average to strong ability to repay
the $200,000 CWCB loan.

Table 2. FInancial Ratios

Financial Ratio , Without With project
, the project Future Year
. fAver. 2001-02) 2004+
Operating Ratio (revenue/expense) ,
weak: less than 100% 120% 196%
average: 100% - 120% (aver.) (strong)
strann: nreaterthan 120%
Debt Service Coverage Ratio ,
(revenues-expenses)/debt service N/A 114%
weak: less than 100% (aver.)
average: 100% - 125%
strana': areater than 125% ,
Cash Reserves to Current Expense
weak: less than 50% ; 209% 49%
average: 50% ' 100% i . (strong) (weak)
stran,;; nreater than 100% ;
Annual Operating Cost per Acre-Ft. (8866 AF) ,
,
weak: greater than $20 ; $1.45 $2.67
average: $10 - $20 , (strong) (strong)
strana: less than $10

As security for the loan the PRBDC will pledge asse$sment revenues backed by an assessment
covenant and the project itself. This is in compliance with CWCB Loan Policy #5 (Collateral).

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Recommendation

Staff recommends a CWCS Small Project Loan not :to exceed $200,000 to the Pine River - Bayfield .
Ditch Company from the Construction Fund to replace 2300 feet of their Seaver Creek Siphon. The
recommended term of the loan is 30 years and the recommended lending rate is 2.75% per annum.
Security for the loan will be a pledge of assessment revenues backed by assessment covenant and
the project itself.

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