BOARD00106 ‎(2)‎

• Board Meeting Date: 1/23/2007
• Description: CF Section - New Loans - Wood Lake Mutual Water and Irrigation Co. - Angel Lake Outlet Repair
• Board Meetings - Doc Type: Memo

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City of Aurora
January 23-24, 2007
Page 7 of 7

Agenda Item 91

Table 2. Financial Ratios

Without Project With Project
Financial Ratio Future Years
Est: 2006 Proj: 2011
Operating Ratio (revenues/expenses) 310%(Strong)* 304%(Strong)*
I weak: <100% ~ -I average: 100% - 120% I-I strong: >120%1 $131 M/42M $185M/61 M
Debt Service Coverage Ratio 396%(Strong)** 157%(Strong)**
(revenues-expenses )/debt service
I weak: <100% 1- I averaQe: 100% - 120% 1- I strona: >120o/J $89M/23M $124M/77M
Cash Reserves to Current Expenses 101 %(Strong) 25%(Weak)
I weak: <50% ~ -I average: 50% - 100% I-I strong: >100%' $42M/42M $15M/61M
Debt per Tap (based on 68,600 taps) $3,500/tap $14,000/tap***
lvveak: >$5000 ~ -I average: $5K - $2.5K I-I strong: <$25001 (Average) (Weak)

. Includes tap fees

.. Does not include debt service reserve

".Includes 1.7% growth in taps

Collateral: Security for the CWCB loan will be a pledge of Utility Enterprise revenues from the
City's Water Fund as described in the General Ordinance and applicable Series Ordinances which
governs its debt. The pledge shall be backed by a rate covenant (1.05x coverage) and annual
financial reporting. CWCB shall have a second lien on the pledged revenues that will be on a parity
with all existing and future second-lien Water Fund obligations.

Staff Recommendation

Staff recommends the Board approve a loan not to exceed $75,750,000 ($75,000,000 for project
costs and $750,000 for the 1 % Loan Service Fee) to the City of Aurora acting by and through its
Utility Enterprise for project costs (not to exceed 90% of the cost of the Conveyance System of the
Prairie Waters Project) from the Construction Fund. The terms of the loan shall be a 30-year loan at
3.75% per annum. Security for the loan shall be in compliance with CWCB Financial Policy #5 with
the variances described.

Supplemental Loan Contract Conditions:

1) CWCB shall disburse loan funds at rate of 50% of the total project invoices submitted to CWCB
until the maximum loan amount is met.

2) The contract for this loan shall incorporate the provisions defined in the General Ordinance and
applicable Series Ordinances which govern the Water Fund's existing debt. Including:

a) This loan shall receive a second-lien priority on the Water Fund's net revenues that will
be on a parity with existing and future second-lien revenue obligations.

b) With regard to future parity debt, CWCB accepts the provisions in the General and Series
Ordinances which allows inclusion of all tap fees in the analysis of borrower's revenues
regarding parity testing on future debt.

Email copy:

Thomas Sather, City of Aurora, Debt & Financing Administrator
Tiffany McEachen, CH2M Hill, Program Delivery Engineer
Amy Stengel, AGO

Attachment: Water Project Construction Loan Program - Project Data Sheet