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<br />" <br /> <br />1 <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />Greeley and Loveland Irrigation Company <br />January 22-23, 2003 <br /> <br />Agenda Item 190 <br /> <br />Table 2. Financial Ratios <br /> <br />Financial Ratio Without With project <br /> the project Future Year <br /> fAver. 2000-021 2004+ <br />Operating Ratio (revenue/expense) <br />weak: less than 100% 101% 105% <br />average: 100% -120% (aver.) . (aver.) <br />strona: areater than 120% <br />Debt Service Coverage Ratio <br />(revenues-expenses)/debt service 297% 104% <br />weak: less than 100% (strong) (aver.) <br />average: 100% - 125% <br />strona-: areater than 125% . - <br />Cash Reserves to Current Expense <br />weak: less than 50% 39% 32% <br />average: 50% - 100% (weak) (weak) . <br />strano: areater than 100% <br />Annual Operating Cost per Acre-Ft. (37,812 AF) <br />weak: greater than $20 $13.15 $15.31 <br />average: $10 - $20 (aver.) (aver.) <br />strana: less than $10 . . <br /> <br />While the ratio of Cash Reserves to Current Expense is in the weak category, it is fairly typical <br />practice for ditch companies not to carry large cash reserves from year to year. The GLlC cash <br />ratio is favorable when considering that a more typical ratio for an irrigation companies is 10 to <br />15%. <br /> <br />Staff further recommends that final approval of the loan be conditioned upon all other standard <br />contracting provisions of the CWCS, including the 1% loan origination fee charged in accordance <br />with CWCS Policy #16. <br /> <br />cc: Ron Brinkman, General Manager, Greeley and Loveland Irrigation Company. <br />Ed Toms, Boyle Engineering Corporation <br />Linda Bassi, AGO <br /> <br />Attachment <br /> <br />Page 5 qf 6 <br />