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<br />Parker Water and Sanitation District <br />November 19-20,2001 <br /> <br />Agenda Item 21 a. <br />~~ <br /> <br />Table 2 shows the Financial Ratios for the PWSD and indicates strong ability to repay the $15 <br />million CWCB loan with the project in place <br /> <br />Table 2. Financial Ratios <br /> <br />Financial Ratio Without With <br /> the oroiect the project <br />Operating Ratio (revenue/expense) 161% 150% (est.) <br />weak: less than 100% (strong) (strong) <br />average: 100% - 120% <br />strono: oreater than 120% <br />Debit Service Coverage Ratio 692% 447% <br />(revenues-expenses)/debt seNice (strong) (strong) <br />weak: less than 100% <br />average: 100% - 125% <br />stronQ: Qreater than 125% <br />Cash Reserves to Current Expense 1,158% 1,000% (est.) <br />weak: less than 50% (strong) (strong) <br />average: 50% - 100% <br />strono: oreater than 100% <br />Monthly Residential Water Bill $ 39.00 $41.00 <br />weak: greater than $60 (&lIB) (.2) <br />average: $30 - $60 ( .. ) <br />strong: less than $30 <br /> <br />As security for the loan the PWSD will pledge revenues backed by rate covenant and annual <br />financial reporting. This security is in compliance with CWCB Loan Policy #5 (Collateral). <br /> <br /> <br />Recommendation <br />Staff recommends a CWCB Construction Fund Loan in amount of $15 million <br />eli ible ro'ect costs to the Parker Water and Sanitation District <br />to construct the Rueter-Hess <br />Reservoir Project and related facilities, and to refinance eligible project costs already paid for by <br />the District. The recommended term of the loan is 20 years and the recommended lending rate <br />is.1II Security for the loan will be a pledge of revenues backed by rate covenant and annual <br />financial reporting. The loan will be funded from the Severance Tax Trust Fund Perpetual Base <br />Account. <br /> <br />Staff further recommends that final approval of the loan be conditioned upon all other standard <br />contracting provisions of the CWCB, <br /> <br /> <br />Action taken bv the CWCS November 20. 2001 <br />The CWCB approved the staff recommendation, with revisions as shown above concerning the <br />description of the borrower, the loan interest rate of 4.5%, and the requirement for parity with <br />existing debt. <br /> <br />cc: Frank Jaeger, Manager, Parker Water and Sanitation Dist., 19801 E. Main St., Parker CO 80138 <br />Linda Bassi, AGO <br /> <br />Attachment <br />C:\WP51\Proj-New\Parker 1101 memo; <br /> <br />L:\boardmem\Nov01\21a Nov 01 Parker <br /> <br />4 <br />