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<br />Springdale Ditch Company <br />May 19-20. 2003 <br /> <br />Agenda Item 18b <br /> <br />Table 2. Financial Ratios <br /> <br />Financial Ratio Without With <br /> the oroiect The oroiect <br />Operating Ratio (revenue/expense) 107% 107% <br />weak: less than 100% (average) (average) <br />average: 100% - 120% <br />slronn: nrealer Ihan 120% <br />Debt Service Coverage Ratio No Debt 143% <br />(revenues-expenses)/debt service (strong) (strong) <br />weak: less Ihan 100% <br />average: 100% - 125% <br />strona: arealer Ihan 125% <br />Cash Reserves to Current Expense 3% 8% <br />weak: less Ihan 50% (weak) (weak) <br />average: 50% - 100% <br />slrona': nrealer Ihan 100% <br />Annual Cost per Ac-Ft (10,647/11.147 ac-ft diverted) $3.07 $3.53 <br />weak: grealer Ihan $20 (strong) (strong) <br />average: $10 - $20 <br />slrona: less Ihan $10 <br /> <br />As security for the loan the SDC will pledge assessment revenues backed by assessment <br />covenant and the project itself. This security is in compliance with CWCS Loan Policy #5 <br />(Collateral). <br /> <br />. <br /> <br />Recommendation . <br />Staff recommends a CWCS Small Project Loan in maximum amount of $121,500 to the <br />Springdale Ditch Company to construct a well augmentation and groundwater recharge project <br />for its shareholders. The recommended loan terms are 30 years at 2.75% (2.828% Annual <br />Percentage Rate) or 20 years at 2.5% (2.61 % Annual Percentage Rate) at the borrower's <br />option. As security for the loan the Company will pledge assessment revenues backed by <br />assessment covenant and the project itself, in compliance with CWCS Loan Policy #5 <br />(Collateral). <br /> <br />Staff further recommends that final approval of the loan be conditioned upon all standard <br />contracting provisions of the CWCS, including the 1 % loan origination fee charged in <br />accordance with CWCS Policy #16. The maximum loan amount may be increased to $122,715 <br />if the borrower elects to finance the 1 % loan service charge <br /> <br />cc: Ken Fritzler. Sprlngdale Ditch Co. <br />Brent Nation, P.E. <br />Linda Bassi, AGO <br /> <br />Attachmenl <br /> <br />C:Proj-New\Sprlngdale 0503 memo; <br /> <br />L:\boardmem\May03\ 1ab - Sprlngdale Dllch <br /> <br />4 <br /> <br />. <br />