LPPD000403

• Contract/PO #: C150067
• Contractor Name: Lower South Platte Water Conservancy District
• Contract Type: Loan
• Water District: 64
• County: Logan
• Loan Projects - Doc Type: Approval Letter

Lower South Platte Water Conservancy District Agenda Item 7b,
May 21-22, 2001 Updated June 6,2001

Table 3. Financial Ratios

Financial Ratio Without With
the project the project
Operating Ratio (revenue/expense) 110% 109%
weak: less than 100% (average) (average)
average: 100% - 120%
strong: greater than 120%
Debit Service Coverage Ratio No Debt 160%
(revenues-expenses)/debt service (strong) (strong)
weak: less than 100%
average: 100% - 125%
strono: oreater than 125%
Cash Reserves to Current Expense 82% 68%
weak: less than 50% (average) (average)
average: 50% - 100%
strong: greater than 100%
Annual Cost per acre-foot Diverted $ 9,89 $12.17
weak: greater than $20 (strong) (average)
average: $10 - $20
strong: less than $10

As security for the loan the LSPWCD will pledge assessments of the Enterprise Fund backed by
assessment covenant as well as revenues from the GASP contract to purchase augmentation
water from the new well. This security is in compliance with CWCS Loan Policy #5 (Collateral).

Recommendation
Staff recommends that the CWCS find that the Lower South Platte Water Conservancy District -
Water Activity Enterprise is eligible for a loan from the Small Project Loan Account. If the project
is not completed in spring 2001, it may be necessary for the State Engineer to curtail junior
wells in summer 2001. Delaying the project until summer 2002 would pose an undue hardship
on the constituents served by the borrower due to the potential for loss of crops,

Staff recommends a Small Project Loan not to exceed $100,000 to the Lower South Platte
Water Conservancy District and/or to the Lower South Platte Recharge Project Water Activity
Enterprise for the LSPWCD augmentation and groundwater recharge project. The
recommended term of the loan is 10 years and the recommended lending rate is 3%. Security
for the loan will be a pledge of assessment revenues backed by assessment covenant and
revenues from the GASP Contract to lease augmentation water from the new well. The loan
would be subject to all other standard contracting provisions of the CWCS.

Action taken bv the CWCS Mav 21. 2001:
The CWCS approved the Staff Recommendation.

CC: Robert Schott, Manager, Lower South Platte WCD, via email.
Jon Altenhofen, PE, Northern Colorado WCD, via em ail.
Linda Bassi, AGO

Attachment

C:\WP51\Proj-New\LSPWCD 501 memo

L:\boardmem\may01\7b-May 01 LSPWCD

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