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<br />Glenn D. Toyne - Well Augmentation Project <br />March 25-26, 2003 <br /> <br />Agenda Item 24d <br /> <br />Table 1. Financial Summary <br /> <br />Proiect Cost $115,000 <br />eWeB Loan Amount (30 years) $75,600 <br />CWCB Loan Payment (includes 10% reserve) $ 4,107 <br />Annual Loan eost per acre-foot (annual recharae diversion 3500 ac. ft.) $1.17 <br /> <br />Creditworthiness: As of February 6,2003, GOT lists assets totaling $1.2 million and liabilities of <br />$475,990, and outstanding loans for real estate totaling $306,050, and farm equipment, totaling <br />$61,150. Annual debt payment on these loans total is approximately $54,000. <br /> <br />Table 2 shows the Financial Ratios for the GOT and indicates, with the exception of cash reserves, <br />strong ability to repay the $75,600 CWeB loan. <br /> <br />Table 2. Financial Ratios <br /> <br />Financial Ratio Without With project <br /> the project Future Years <br />Operating Ratio (revenue/expense) <br />weak: less than 100% 158% 154% <br />average: 100% -120% (strong) (strong) <br />stronQ: Qreater than 120% <br />Debit Service Coverage Ratio <br />(revenues-expenses)/debt service 190% 167% <br />weak: less than 100% (strong) (strong) <br />average: 100% - 125% <br />stronQ: Qreater than 125% <br />Cash Reserves to eurrent Expense <br />weak: less than 50% 15% 10% <br />average: 50% - 100% (weak) (weak) <br />stronQ: Qreater than 100% <br />Annual Operating eost per Acre-Ft. (1100 ac-ft) <br />weak: greater than $20 $19.72 $20 <br />average: $10 - $20 (aver.) (aver) <br />strona: less than $10 <br /> <br />eollateral - As security for the loan the GOT will pledge a security interest in real estate, 160 acres <br />offarm ground located in NW y., of Sec. 26, T11N, R47W. The land consists of 127 acres flood <br />irrigated (2 wells) and 33 acres of dryland. The 127 acres of irrigated land is estimated to be worth <br />$1000 per acre, and at this level proposed collateral would be sufficient to secure the $75,600 loan. <br />During the contract process supporting documentation of land values, based on current land use, <br />will be submitted by a Colorado Certified General Appraiser. The collateral would be in compliance <br />with revised CWeB Loan Policy #5 (eollateral). <br /> <br />Recommendation <br /> <br />Staff recommends a eWeB Small Project Loan not to exceed $75,600 to Glen O. Toyne from the <br />eonstruction Fund to construct a system of wells and recharge pond to replace out-of-priority irrigation <br />well depletions. The recommended term of the loan is 30 years and the recommended lending rate is <br />2.75% per annum. Security for the loan will be agricultural real estate with a total collateral value of <br />$75,600. The real estate value will be supported by documentation from a eolorado eertified General <br />Appraiser, and all necessary permits and easements must be obtained. <br /> <br />Page 6 of 6 <br />