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<br />City of Aurora
<br />January 23-24, 2007
<br />Page 6 of 7
<br />
<br />Agenda Item 9
<br />
<br />Financial Analysis
<br />
<br />Table 1 shows a summary of the financial aspects of the loan request. The City qualifies for a
<br />Municipal Middle Income Interest Rate of 3.75% for 30-years. The CWCB will finance up to a
<br />maximum of $75 million dollars for the Conveyance System. The remaining costs will be financed
<br />with available water revenues and additional Water Revenue Bonds. The City's average monthly
<br />water bill is $70/month and is projected to increase by an average of 10% for the next five years
<br />then increase by an average of 4% for the next 10years.
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<br />Table 1. Financial Summary
<br />
<br />I PROJECT/LOAN
<br />I Total Prairie Waters Project Cost
<br />I Conveyance System Cost (Pump Station .& Pipeline)
<br />I CWCB Loan (approximately 30% of Conveyance System Costs)
<br />I CWCB Annual Loan Payment
<br />I CWCB Loan Obligation (including 10% debt reserve funding)
<br />I Monthly Per Tap Cost of CWCB Loan (68,600 taps)
<br />I Total Project Cost per Acre-Foot (based on 15,000 ac-ft)
<br />
<br />$800,000,000
<br />$250,000,000
<br />$75,000,000
<br />$4,200,000
<br />$4,620,000
<br />$5.60
<br />$57,OOO/AF
<br />
<br />Creditworthiness: The City's Water Fund has several outstanding long-term debts (balances as of
<br />December 2005):
<br />
<br />First Lien Water Revenue Obligations Remaining Annual Pmt Maturity .
<br />Water Improvement Revenue Bonds, Series 2003A $53,335,000 $5,013,175 8/1/2021
<br />CWRPDA Drinking Water Revenue Bonds, Series 1999A $9,756,642 $1,256,359 8/1/2014
<br />CWRPDA Water Resources Revenue Bonds, Series 2005D $100,000,000 $4,461,640 8/1/2033
<br />Second Lien Water Revenue Obligations
<br />Water Improvement Revenue Bonds, Series 2004A $40,000,000 $1,599,996 8/1/2033
<br />Subordinate Lien Water Revenue Obligations
<br />Rocky Ford Ditch II Water Rights Notes $6,496,809 $1,216,482 1/1/2019
<br />RlB-I-One & RlB-I-Two Water Rights Notes $201,245 $57,858 11/19/2009
<br />General Obligation Water Refunding Bonds
<br />GO Water Refunding Bonds, Series 2003 $50,385,000 $8,180,475 11/1/2014
<br />GO Water Refunding Bonds, Series 1996 $1,250,000 11/1/2006
<br /> $261,424,696 $21,785,984
<br />
<br />iThe City of Aurora's Utility Enterprise has a high credit rating from Fitch Ratings of AA- and from
<br />Moody's Investors Service of A 1.
<br />
<br />iTable 2 shows the Financial Ratios for the City's Water Revenues.
<br />
<br />Ie
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