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<br />Plumb and Dailey Ditch Co. Agenda Item 12a. <br />May 22-23, 2000 (Updated 8/2100) <br /> <br />Project Cost $46,620 <br />Loan Amount (90% of Project Cost) $42,000 <br />CWCB Loan Payment Amount, including 10% loan reserve $3,325 <br />Number of Shareholders 13 <br />Number of Shares of Stock 40 <br />Current Assessment per Share $180 <br />Future Assessment per Share $263 <br />Annual Project Cost per acre-foot $1.46 <br />(Average annual diversions: 2,278 acre-feet) <br /> <br />Table 1. Financial Summary <br /> <br />Credit worthiness: PDDC has no existing debt. Table 2 shows the Financial Ratios for the <br />PDDC and indicates average to strong ability to repay with the project in place. <br /> <br />Financial Ratio Without the project With the project <br />Operating Ratio (revenue/expense) 108% (average) 109% (average) <br />Debit Service Coverage Ratio No debt (strong) 129% (strong) <br />(revenues-expenses)/debt service <br />Cash Reserves to Current Expense 79% (average) 53% ( strong) <br />Annual Cost per Acre-Foot $ 2.93 (strong) $4,39 (strong) <br /> <br />Table 2. Financial Ratios <br /> <br />As security for the loan the PDDC will pledge assessment revenues backed by assessment <br />covenant and one payment in a certificate of deposit account to be held by the State, This <br />security is in compliance with CWCB Loan Policy #5 (Collateral), and is considered adequate <br />because the Borrower is financially strong. <br /> <br />Recommendation <br />Staff recommends that the CWCB find that the Plumb and Dailey Ditch Company is eligible for <br />a loan from the Small Project Loan Account. The diversion is in need of repair and can not be <br />relied upon for delivery of water, Delaying the project until summer or fall 2001 would result in <br />undue hardship on the borrower, <br /> <br />Staff recommends a Small Project Loan not to exceed $42,000 to the Plumb and Dailey Ditch <br />Company for up to 90% of the costs to rehabilitate the Company's diversion structure on the <br />Boulder Creek. The recommended term of the loan is 20 years and the recommended lending <br />rate is 3.75% (20-year loan rate for Agricultural borrowers in 2000,) Security for the loan will be <br />a pledge of assessment revenues backed by assessment covenant and one payment in a <br />certificate of deposit account to be held by the State. <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 />Action taken bv the CWCB Mav 23, 2000 <br />The CWCB approved the Staff Recommendation. <br /> <br />CC: Les Williams, President Plumb & Dailey Ditch Co., 9595 Nelson Rd. - Box C, Longman!, CO 80501 <br />Linda Bassi, AGO <br />Attachment <br />C:IWP51IProj-NewIPlumb&DaileyDiversion500memo ; L:lboardmemlmarOOI12a-MayOO <br /> <br />3 <br />