Laserfiche WebLink
<br />Credit Worthiness <br /> <br />The Kern Reservoir and Ditch Company has no debt. Table 3 shows the Financia] Ratios for the Kern <br />Reservoir and Ditch Company and indicates 3 ratios in the average category and 2 in the weak category <br />with the $],000,000 CWCB loan in place. However, the Annual Cost !Jer Acre-Foot is a ratio relating to <br />purely agricultural projects. Municipal and multip]e use projects can typically support a much higher <br />annual cost. The Monthlv Residential Water Bill was included because the major stockholder in the Kern <br />Reservoir and Ditch Company is the Town of Windsor. (Note: grave] obtained during the dredging <br />process will be processed for sale. It is estimated that income from this source could offset project costs <br />by as much as $1.2 million.) <br /> <br />TABLE 3: FINANCIAL RATIOS <br /> <br />Financial Ratio Without With <br />The oroiect The oroiect <br />Operating Ratio (revenue/expense) 107% <br />weak: less than 100% 100% (average) <br />average: 100% - 120% (average) <br />strong: greater than 120% <br />Debit Service Coverage Ratio <br />(revenues-expenses)/debt service No debt 110% <br />weak: less than 100% (strong) (average) <br />average: 100% - 125% <br />strong: greater than 125% <br />Cash Reserves to Current Expense <br />weak: less than 50% 50% 20% <br />average: 50% - 100% (average) (weak) <br />strong: greater than 100% <br />Annual Cost per Acre-Foot (2,600 ac-ft) <br />weak: greater than $20 $ 18 $33 <br />average: $10 - $20 (average) (weak) <br />strong: less than $10 <br />Monthly Residential Water Bill (Municipal) <br />weak: greater than $60 $45 $45 <br />average: $30-$60 (average) (average) <br />strong: Less than $30 <br /> <br />COLLATERAL <br /> <br />As security for the loan the Kern Reservoir and Ditch Company will pledge assessment revenues backed <br />by assessment covenant and the project itself. This security is in compliance with CWCB Loan Policy <br />#5 (Collateral). <br /> <br />The Kern Reservoir and Ditch Company can offer as collatera] for the CWCB loan a deed of trust for <br />the reservoir and surrounding property owned by the Ditch Company. <br /> <br />Feasibility Study <br />Kern Reservoir Enlargement <br /> <br />.6- <br /> <br />August 2002 <br />J:\0636_142\Windsor Lake FS_doc <br />