BOARD02329

• Board Meeting Date: 7/23/2002
• Description: CF Section - Riverside Ditch and Allen Extentsion Company - Ditch Rehabilitation
• Board Meetings - Doc Type: Memo

Financial Ratio Without With
. the Droiect The oroiect
Operating Ratio (revenue/expense) ~05% ~20%
weak: less than 100% (average) (average)
average: 100% - 120% -
strono: creater than 120% .
Debit Service Coverage Ratio No Debt ~38%
(revenues-expenses)/debt service (strong) (strong)
weak: less than 100% .
average: 100% - 125% .
strona: creater than 125% .
Cash Reserves to Current Expense 404% 262%
weak: less than 50% (strong) (strong)
average: 50% - 100% .
strono: oreater than 100% .
Annual Cost per Ac-Ft (4,000 ac-fl diverted) $ 0.73 $~.4~
weak: greater than $20 (strong) (strong)
average: $10 - $20 .
strono: less than $10

Riverside Ditch and Allen Extension Company
July 23-24, 2002

Agenda Item 19b.

Table 2. Financial! Summary

Pro'ect Cost
Number of Shareholders
Number of Shares of Stock
CWCS Loan Amount
CWCS Loan Pa ment includes ~O% reserve
Current assessment er share
New assessment er share
Annual Loan Cost er acre-foot

$67,000
~8
~450
$50,000
$2,7~6
$2.00
$3.90
$0.68

Credit worthiness: The RDAEC has no existing debt. Table 3 shows the Financial Ratios for
the RDAEC and indicates average to strong ability to repay a $50,000 CWCS loan with the
project in place. .
Table 3. Financial Ratios

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

Recommendation

Staff recommends a CWCS Small Project Loan in n;1aximum amount of $50,000 to the
Riverside Ditch and Allen Extension Company for rehabilitation work on the Riverside Ditch and
Allen~xtension. The recommended term of the loar) is 30 years at 2.75% or 20 years at 2.5%
at the borrower's option. The security for the loan wi,lI be a pledge of assessment revenues'
backed by assessment covenant and the project itself.

Staff further recommends that final approval of the loan be conditioned upon all other standard
contracting provisions of the CWCS.

cc:

Susan Miller, Riverside Ditch and Allen Extension Co., PO Box 892, Buena Vista, CO 81211
John Nelson, NRCS District Conservationist, 325'W. Rainbow, Salida, CO 81201
Linda Bassi, AGO

Attachment
C:IWP51IProj-NewIRiversideDitch 702memo;

L:lboardmemlJuly02\Agenda Item 19b July02 Riverside Ditch
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