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<br />Central Colorado WCD <br />November 25-26, 2002 <br /> <br />Agenda Item 20e. <br />(Updated December 4,2002) <br /> <br />become available in July 2003, and would be used to refinance this debt, acquire added <br />senior water rights, and construct new facilities in 2003, 2004, and 2005. <br /> <br />Financial Analvsis <br />The total estimated cost of the project is $22 million. Staff recommends a loan in <br />amount of $20 million (90 percent of the total cost) for 2002-2003, The GMS-CCWCD <br />will repay the loan using current revenues, and revenues derived from a property tax <br />increase. The GMS-CCWCD will fund its 10% cost share from existing reserves. Table 4 <br />is a summary of the financial aspects of the project. <br /> <br />Table 4. Groundwater Management Subdistrict of the <br />Central Colorado Water Conservancy District <br />Financial Summa <br /> <br />Pro'ect Cost <br />CWCS Loan Amount <br />CWCS Loan Pa ment includes 10% reserve. <br />Current Tax Revenues <br />Tax Revenues re uired with CWCS loan <br />Current Au mentation Assessments <br />Au mentation Assessments with loan <br />Annual Loan Cost er acre-foot 10,300 acre-feet ield <br /> <br />$22 million <br />$20 million <br />$1,086,457 <br />$708,119 <br />$1,394,576 <br />$123,550 <br />$123,550 <br />$105 <br /> <br />Water is used almost exclusively for augmentation of junior agricultural wells. (Only 6 of <br />the Subdistrict's 966 member wells supply water for municipal purposes.) The CWCS <br />Agricultural loan rate of 2.75% for 30 years would apply to this loan. <br /> <br />Credit worthiness: The GMS-CCWCD has no debt. Table 5 shows the Financial Ratios <br />and indicates, with the exception of the Cost per acre-foot, average to strong ability to <br />repay with the project in place. <br /> <br />Table 5, <br />Financial Ratio <br />Operating Ratio (revenue/expense) <br />weak: less than 100% <br />average: 100% - 120% <br />stron : reater than 120% <br />Debit Service Coverage Ratio <br />(revenues-expenses)/debt service <br />weak: less than 100% <br />average: 100% -125% <br />stron: realer than 125% <br />Cash Reserves to Current Expense <br />weak: less than 50% <br />average: 50% . 100% <br />stron : reater than 100% <br />Annual Cost per Acre-Foot (22,260 AF Average <br />annual depletions covered) <br />weak: greater than $20 <br />average: $10 - $20 <br />stron : less than $10 <br /> <br />Financial Ratios <br />Without the <br />193% <br />(strong) <br /> <br />ro'ect <br /> <br />With the <br />136% <br />(strong) <br /> <br />ro 'ect <br /> <br />No debt <br />(strong) <br /> <br />150% <br />(strong) <br /> <br />139% <br />(strong) <br /> <br />43% <br />(weak) <br /> <br />$36 <br />(weak) <br /> <br />$85 <br />(weak) <br /> <br />5 <br />