BOARD01808

• Board Meeting Date: 11/19/2001
• Description: CF Section - Lake Henry Reservoir Company
• Board Meetings - Doc Type: Memo

Lake Henry Reservoir Co.
November 19-20, 2001

Agenda Item 22g.

Table 4. Financial R~tlos

Financial Ratio Without With
· the oroiect the Droiect
Operating Ratio (revenue/expense) 175% 140%
weak: less than 100% (strong) (strong)
average: 100% - 120%
strona: areater than 120% .
Debit Service Coverage Ratio No Debt 117%
(revenues-expenses)/debt service (str~ng ) (average)
weak: less than 100%
average: 100%.125%
strona: areater than 125%
Cash Reserves to Current Expense 142% 66%
weak: less than 50% (strong) (average)
average: 50% .100%
strona: areater than 100% .
Annual Cost per Ac-Ft (Capacity 9,500 ac-ft) $ 7.27 $10.70
weak: greater than $20 (st~ong ) (average)
average: $10 - $20
strona: less than $10

As security for the loan the LHRC will pledge assessment revenues backed by assessment
covenant and the project itself. This security is in compliance with CWCS Loan Policy #5
(Collateral).

Recommendation i
Staff recommends a CWCS Loan in amount of $490,000 (for up to 75% of eligible project
costs) to the Lake Henry Reservoir Company for rehabilitation of the Lake Henry Dam. The
recommended term of the loan is 30 years and the recommended lending rate is 4.5%. Security
for the loan will be a pledge of assessment revenues backed by assessment covenant and the
project itself. The loan will be funded from the Construction Fund.

Staff further recommends that final approval of the lo~n be conditioned upon all other standard
contracting provisions of the ewcs.

cc: Allen Ringle, Manager, Lake Henry Reservoir Co.,iP.O. Box 8, Ordway, CO 81063
Michael Miller, PE, URS Corporation, 8181 E. Tufts Av~., Denver, CO 80237
Linda Bassi, AGO .

Attachment
C:IWP51IProj-NewILake Henry 1101memo;

L:lboardmemlNov01\22g Nov 01 Lake Henry

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