BOARD02190

• Board Meeting Date: 7/23/2001
• Description: CF Section - Glenwood Irrigation Company
• Board Meetings - Doc Type: Memo

Table 4. Financial Ratios

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Glenwood Irrigating Company
July 23-24, 2001

Agenda Item 9a.

Financial Ratio

Without
the yo'ect
91%
(weak)

With
the yo'ect
111%
(average)

Operating Ratio (revenue/expense)
weak: less than 100%
average: 100% . 120%
stron : reater than 120%
Debit Service Coverage Ratio
(revenues-expenses)/debt service
weak: less than 100%
average: 100% - 125%
stron : reater than 125%
Cash Reserves to Current Expense
weak: less than 50%
average: 50% . 100%
stron : reater than 100%
Annual Cost per Acre-Foot (6,600 AF)
weak: greater than $20
average: $10 - $20
stron : less than $10

No !debt
(strong)

140%
(strong)

106%
(strong)

73%
(average)

$ 2,30
(strong)
!

$3.45
(strong)

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

Recommendation e
Staff recommends that the CWCB find that Glenwood: Irrigation Company is eligible for a loan
from the Small Project Loan Account. The diversion structure and headgate are in poor condition
and could be destroyed during the next flood event. If this occurs the Company would be unable
to deliver water to its shareholders, Delaying the projElct until summer or fall 2002 would
jeopardize crops and result in undue hardship on the borrower.

Staff recommends a Small Project Loan not to excee~ $85,000 to the Glenwood Irrigation
Company to rehabilitate the diversion structure and h~adgate for the Glenwood Ditch. The
recommended term of the loan is 30 years and the recommended lending rate is 5%. Security
for the loan will be a pledge of assessment revenuesi backed by assessment covenant and the
project itself, .

Staff further recommends that final approval of the Iqan be conditioned upon all other standard
contracting provisions of the CWCS, !

cc: Raymond Thompson, Secretary-TreBsurer , Glen~ood Irrigation Company
Denis Davidson, NRCS, Glenwood Springs
Linda Bassi, AGO

Attachment

C:IWP51IProj-NewlGlenwoodlrrigatlon701 memo;

L:lboardmemlJuly0119a Juiy01 Glenwood Irrig

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