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<br />Current debt service for the preceding schedule amounts to about $2.2 million per year. <br />With two additional financings of $10.0 million each in 1999 and 2000 and with the <br />disbursement of the remaining $6.4 million from the Construction Fund, future debt <br />service is expected to increase to as much as about $4.3 million in the next few years. <br />Future debt service is discussed further under Revenue and Expenditure Projections <br />below. <br /> <br />Financial Condition <br /> <br />CWCB staff has reviewed the District's audited financial statements for the years 1995 <br />and 1996 as well as preliminary data for 1997 as submitted by the District staff. The <br />results of the CWCB staff review are summarized in Table 9 in the form of several key <br />financial indicators. <br /> <br />Table 9 - Financial Indicators Based on 1995 - 1997 Financial Statements <br /> <br /> <br />1995 <br />134% <br />$1,222 <br />89% <br /> <br />1996 <br />150% <br />$1 ,1 05 <br />191% <br /> <br />1997 <br />138% <br />$1 ,029 <br />191% <br />26% <br /> <br />The operating ratios and the debt to equity ratios could be considered as strong to very <br />strong. The amount of debt per tap is in the average category. Debt service coverage was <br />weak in 1995 (a year in which a loss for certain investments was taken) but was in the <br />strong category for 1996 and 1997. (These ratings, with the exception of the debt to <br />equity ratio, are based on the system used by the Colorado Division of Local <br />Government.) Total current assets plus investments are estimated at about $33 million for <br />1997. <br /> <br />Revenue and Expenditure Projections <br /> <br />For the purposes of this report, the Ute WCD staff has prepared a projection of all annual <br />District revenues and expenditures for the years 1996 through 2032 (actual figures were <br />used for 1996 and 1997). The projection, as displayed in Attachment A, includes both <br />current debt as well as debt service on $26.4 million in new debt that is expected to be <br />incurred in 1999 and 2000 as a result of the Plateau Creek Pipeline Project. It was <br />assumed that the two new financings (notes or bond issues) would be for 20 years at 5.5 <br />percent. The projection also includes an estimate of the debt service coverage ratio for <br />each of the 35 years using total revenues exclusive of tap fees less operating expenses all <br />divided by total debt service. <br /> <br />A review of the projections indicates that debt service coverage ratios (as defined above) <br />are adequate in each year of the projection period. The District's cash reserves will <br /> <br />12 <br />