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<br />New Cache La Poudre Irrigating Company <br />November 19-21 2003 <br /> <br />Agenda Item Bb <br /> <br />Financial Ratio Without With completed <br /> the project project <br /> (Aver. 2001-02) (Future Year- <br /> 2008+) <br />Operating Ratio (revenue/expense) <br />weak: less than 100% 121% 228% <br />average: 100% - 120% (strong) (strong) <br />stronQ: Qreater than 120% <br />Debt Service Coverage Ratio <br />(revenues-expenses)/debt service 286% 102% <br />weak: less than 100% (strong) (aver.) <br />average: 100% - 125% <br />strana: areater than 125% <br />Cash Reserves to Current Expense <br />weak: less than 50% 18% 11% <br />average: 50% - 100% (weak) (weak) <br />strana: areater than 100% <br />Annual Operating Cost per Acre-Ft. (37,500 AF) <br />weak: greater than $20 existing $11 .33 $22.64 <br />average: $10 - $20 (aver.) (weak) <br />strona: less than $10 <br /> <br />As security for the loan, the NCLPIC will pledge assessment revenues backed by an assessment <br />covenant and the project itself. The CWCB's security interest in the project itself will be second to <br />the $1,409,649 loan with the Cornish Plains Livestock, LLLP. In view of the fact that CWCB will <br />have first position in the pledge of assessment revenues, and considering the overall value of the <br />project as based on its cost of $9,542,000, staff finds the project to be in compliance with CWCB <br />Loan Policy #5 (Collateral). <br /> <br />Recommendation <br /> <br />Staff recommends a loan not to exceed $7,272,000 ($7,200,000 for project costs and $72,000 for <br />the 1% Loan Service Fee in accordance with CWCB Loan Policy #16), to the New Cache La <br />Poudre Irrigating Company from the CWCB Construction Fund, to construct an equalizer reservoir, <br />two additional storage reservoirs, and a pumping station and inter-connecting pipeline. The <br />recommended terms of the loan are 30 years at 2.50% per annum. Security for the loan will be a <br />pledge of assessment revenues backed by assessment covenant and the project itself. <br /> <br />Staff further recommends that final approval of the loan be conditioned upon all other standard <br />contracting provisions of the CWCB. <br /> <br />cc: Mike Hungenberg, President, New Cache La Poudre Irrigating Company <br />Don Magnuson, Superintendent, New Cache La Poudre Irrigating Company <br />David Marsh, Smith Geotechnical/Engineer Consultants <br />Linda Bassi, AGO <br /> <br />Attachment <br /> <br />Water Project Construction Loan Program-Project Data <br /> <br />Borrower: New Cache La Poudre Irrigating Co. <br /> <br />County: Weld <br /> <br />Page 6 of 7 <br />