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<br />Central Colorado WCD <br />November 19-21 , 2003 <br /> <br />Agenda Item Be <br />(Updated November 21,2003) <br /> <br />Table 3. Ground Water Management Subdistrict - CCWCD <br />Financial Summary - Total CWCB Loans <br /> <br />Project Cost $22.85 million <br />CWCS Loans (Total amount) $20 million <br />CWCS Loan Payment (includes 10% reserve.) $1,077,561 <br />Current Tax Revenues $666,655 <br />Tax Revenues reauired with CWCS loan $1,744,216 <br />Current AUQmentation Assessments $182,058 <br />AUQmentation Assessments with loan $182,058 <br />Annual Loan Cost per acre-foot (9,500 acre-feet yield) $113 <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 2.5% for 30 years would apply to this follow-up loan. <br /> <br />Credit worthiness: The GMS-CCWCD has an existing $10 million short term loan <br />which will be paid off using funds from the $15 million CWCS loan recommended <br />November 2002. Total debt will be $20 million, if the $5 million follow-up CWCS loan is <br />approved. Table 4 compares the financial ratios in 2002 (prior to the issuance of any <br />debt) with the financial ratios, assuming $20 million in CWCS loans. The Financial <br />Ratios indicate, with the exception of the Cost per acre-foot, average to strong ability to <br />repay with the project in place. <br /> <br />Table 4. Financial Ratios <br /> <br />Financial Ratio Without the proiect With the project <br />Operating Ratio (revenue/expense) 149% 118% <br />weak: less than 100% (strong) (average) <br />average: 100% - 120% <br />strong: greater than 120% <br />Debit Service Coverage Ratio No debt 125% <br />(revenues-expenses )/debt service (strong) (strong) <br />weak: less than 100% <br />average: 100% - 125% <br />strong: greater than 125% <br />Cash Reserves to Current Expense 84% 51% <br />weak: less than 50% (average) (average) <br />average: 50% - 100% <br />strong: Qreater than 100% <br />Annual Cost per Acre-Foot (22,260 AF Average $29 $78 <br />annual depletions covered) (weak) (weak) <br />weak: greater than $20 <br />average: $10 - $20 <br />stronQ: less than $10 <br /> <br />As security for the loan the GMS-CCWCD will pledge Tax revenues backed by rate <br />covenant. This security is in compliance with CWCS Loan Policy #5 (Collateral). <br /> <br />5 <br />