C150118 Feasibility Study

• Contract/PO #: C150118
• Contractor Name: Kern Reservoir and Ditch Company
• Contract Type: Loan
• Water District: 1
• County: Weld
• Bill Number: SB 03-110
• Loan Projects - Doc Type: Feasibility Study

Credit Worthilless

rhe Kern RcservlHr and Ditch Company has no debt Table 3 shows the Financial Ratios I()]" the Kenl
R~servoir and Ditch Company ~lI1d indicates ~ ratios in the average calt.:gory and 2 in the weak category
wrth the S 1 ,000,000 eWCR loan 111 place. Ilowever, the ..II1I1"al ('osl Li<'F ,lae,Fool is a ratio relating to
purely agricultural proJects. ,'vtunieipal and multiple use projects can typically support a mllch higher
annual cost. The ,\Imllh/1' Res/{lelllial Wala Hill was included because the major stockholder in the Kenl
Reserverir :lnd Ditch (.ol11pany is the Town or Windsor. (Note: gravel erbta/ned durint', the drcdt',int',
process will he pr()l'c~scd for ')alc, It is estimated that income fl"orn lhlS ::;ourcc could olTsd project costs
bvas much as SI.2 million.)

TABLE J: FIi\ANClAL RATIOS

r~- ,.

T -.

lViI/lOut
Tlte 1I'o'ect

Fillancial Ratio

I Operal!!]g R;jlio (l"l.'vr.:IlUL'lt.:"\pCllsc)
weak: less than 1001/;)
average: I OO!\, - l2()'};,
strong,: \2JC~ltcr than 12()OI\\
Debit Sl'rvicc Coverage Ratw
(rt'\'cllllL's-L'xpcnse~l/di..'bt serV\(c
\veak: less than 100'%
avcrJge: I 00% ~ 1 ~5(~{1
strong: grcalcr than I ~~r~
Cash Reserves to Current Expense
WCJk: less (han 50%
Jver;Jgr: -'lOll!r, - 1 OO(~I,>
I stro~l'alt:r thall 100o/!) _
, Annual Cost per Acre-Foot (2.(,OO ~lC-n)
weak: greater than S20
average: S 111 ' $20
strong: less than $1 ()
Monthly Residcntial Water Bill (MuniCIpal)
weak: greater (han SMl
average: S30-560
strong: Less than $30

loon,;)
lavcragcl

No dent
(strong)

---I

I
_1._
I

50%
(average I

S 18
(a vcragc)

S45
(J\'CTage)

~,L

COLLATERAL

r-- -- "';Ih-- 'I
I The Jro'('('f

i
-,-

l07il()
(avcr~\g(')

1

I

I
I
--I

IIO''i;,
(averagc)

10(~-h
(weak)

~l- ______
I
,
~m
I::;~~:' I

-,----------->

As security f()J-lhc loan the Kern Reservoir and Ditch Company will rlcdgc 3SSCSSIllcnt revenucs backed
hy a:'.sessrnent covenant and the proJect itsell'. This security is ill comrliancc with C\NeB Loan Policy
115 (Collateral).

The Kern Reservoir anc!D;teh ('ol11panv can orter as wllaler,,1 Ii)! the eW( '/3 loan a deed err trust I,)r
llle fcservoir and surroulluing property owned by the Ditch COmpi.lllY.

I:C.15Ibdlty 5IUdy
Kern ReserVOir Enlargelllent

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J Ij",!> 1~2 W'nd"" l a..e (.... ,~"

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