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<br />Gt_r_'_odl'n...-Com"..."..QOj'dL....~.. <br />""_1il-2',2l'XlJ <br /> <br />Al;e.'''''''"mlld <br /> <br />CreditworThiness The GLJC cl,nrently has two oulstandlng CWCS loans, an April 1998 loan for <br />$23,400, with a remammg amollnt of $12,634 and an annual payment of $2,778 through 2008; and <br />a May 1999 loan for $308,000, Wllh a remaIning amount of $275,765 and an annual payment of <br />$18.269 Ihrough 2028. Annllal payments on both loans lotal $21,047, <br /> <br />Tatlle 2 shows the Financial Raliosand indlC31es, wilh the exception of cash reserves, average to <br />strong ability 10 repay the $2,844,000 CWCS loan, Wllh annual assessmenls raised to $308, <br />Tabla 2, Financial Ratl05 <br /> <br />Financial Ratio Without Wifhprojec, <br /> VI. proJect Fu'ureYllldr <br />Operating RallO (revenoeJexpeose) (AIf.r.20t')(}..4?) 2.... <br />*<!;Jl<;lesslI'.anlOO'l', 101% '"'' <br />_"l/O:l:lO%_I~ <br />~'\Ulrealefll'.anl2C% (aver.) (strong) <br />Debt Sef'V1Ce Coverage Ralio <br />(revenues-expenses)/debtservice ,.,,, 121% <br />......!esslll;onlOO'J1. (slroog) (aver.) <br />a......-ag.-lOO%-l2!;% <br />1.~lM".anI2'5% <br />Cash Reserves to Current Expense <br />""'~k' "'Iltian 50% "" 29% <br />_ra;e:~_100"t0 (weak) (weak) <br />'Irong:grMle<lhan 100% <br />Anrlual Operllting Cost poet Acre-Ft (37,812AFl <br />wu<grealerlha.-lSZO $13.15 $17_35 <br />a..."rage-S1C.SZO (aver.) (aver.) <br />"0 : less lMan S,C <br /> <br />I <br /> <br />WhIle the ratIO of Cash Reserves to Current Expense is in Ihe weak category, il is fairly typical <br />practice 'or dilch companies not 10 carry large cash reserves from year to year. The GLJC rabO Is <br />favorable when considering that a more typical raloo for an irrigation compan,es is 10 to 15%, <br /> <br />As security for the ~n the GLJC will pledge assessmenl re~et1ues backed by an assessment <br />covenant and !he projecl itself_ This is In oompliance wiltl ewcs Loan Policy #5 (CoIlaterai). <br /> <br />Recommendation <br /> <br />Slaff recommends a ewCB Sma" Project Loan, not to exceed $2.644.000 ($2.815,560 fa project <br />costs and $28.440 fOf lhe 1% Loan Sef'{lce Fee, II'l acoofCtanoo W1th ewcs Loan PolICy #16). 10 lt1e <br />Greeley and Loveland IrrigaliOfl ComPany from \t1e ConslruCllOf'l Fund 10 construcl a new spillway at <br />Boyd Lake The recommended term of the IoiIn Is 30 years and the reoommended lending rate is <br />300% per amum. Seclll1ty for the loon W1~ be a p~e 01 assessment rewnues baci<ed by <br />assessmenlcovenanlandlt1eprOJecll!self <br /> <br />Slaff further recommends lhal final approval of the loan De OOfllNlOf1ed upon ail olt1er standard <br />contracting pfO~isior1s ollhe ewCB_ <br /> <br />C(:: Roo Bnn_man. General Manager, Gfe<lley and Lovelilf1d Irr'ltlltion Coml>~ny, <br />Ed Torns. Boyle En9ir\&ftfu>gCorporiltlgn <br />Linda Bas"',AGO <br /> <br />^~;JChn"nl <br /> <br />Pagl!5of6 <br />