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<br />Supply Irrigating Ditch Co. <br />March 24-26. 2003. <br /> <br />Agenda Item 24e <br /> <br />Credit worthiness: SIDC has one existing debt in ambunt of $21,045 to the First National Sank <br />of Longmont, upon which all payments have been made as agreed. A condition of the CWCS e <br />loan will be that the bank subordinates its position so that the CWCS has a first position on the <br />collateral (the pledge of revenues and the project,) Table 2 shows the Financial Ratios and <br />indicates, with the exception of cash reserves, average to strong ability to repay with the project <br />in place. <br /> <br />Table 2. Financial Ratios <br /> <br />Financial Ratio Without With <br /> the Droiect The Draiect <br />Operating Ratio (revenue/expense) 126% 115% <br />weak: less than 100% (strong) (average) <br />average: 100% - 120% <br />strona: areater than 120% <br />Debit Service Coverage Ratio 1114% 130% <br />(revenues-expenses)/debt service (strong) (strong) <br />weak: less than 100% <br />average: 100% - 125% <br />stronn: areater than 125% <br />Cash Reserves to Current Expense 7% 8% <br />weak: less than 50% (weak) (weak) <br />average: 50% - 100% <br />strona: oreater than 100% . <br />Annual Cost per Ac-Ft (9,500/9,745 ae-ft) $7.50 $12.93 <br />weak: greater than $20 (strong) (average) <br />average: $10 - $20 <br />strona: less than $10 <br /> <br />e <br /> <br />As security for the loan the SIDC 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 />Recommendation <br />Staff recommends a CWCS Small Project loan from!the Construction fund not to exceed <br />$1,000,000, to the Supply Irrigating Ditch Company to rehabilitate and enlarge the Knoth <br />Reservoir. The recommended term of the loan is 30 iyears and the recommended blended <br />interest rate is 3% (3.079% Annual Percentage Rate.) Security for the loan will be a pledge of <br />assessment revenues backed by assessment coveriant and the project itself, in accordance <br />with CWCS Loan Policy #5. <br /> <br />Staff further recommends that final approval of, the loan be conditioned upon standard <br />contracting provisions of the CWCS, including the 1 % loan origination fee charged in <br />accordance with CWCS Policy #16. <br /> <br />cc: Dan Grant, Secretary-Treasurer, Supply Irrigating Ditch Company. <br />Duane Smith, P.E.. Smith Geotech. <br />Linda Bassi, AGO <br /> <br />Attachment <br /> <br />C:IProj-NewlSupplylrrCo303memo <br />L:lboardmemIMarQ3\24e. Supply Irrigating Ditch Co <br /> <br />e <br /> <br />4 <br />