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<br />. . <br /> <br />Pinewood Springs Water District <br />July 20-21,2004 <br /> <br />Agenda Item 14e <br /> <br />e <br /> <br />Table 2 is a summary of the financial aspects of the project. A CWCB loan of $2,033,850 would <br />have an annual payment of $129,380 (including the 10% reserve requirement) at the loan terms of <br />4.0% for 30 years. PSWD will also obtain a direct loan from the DWRF for $875,625 at 3.5% for 20 <br />years, with an annual payment of $61,245. <br /> <br />a e . mancla ummary <br />Total Proiect Cost $3,109,100 <br />Raw Water Proiect Cost $2,711,805 <br />Number of Taps Issued 268 <br />CWCB Loan Amount (30 years) $2,033,850 <br />CWCB Loan Payment (includes 10% reserve) $129,380 <br />DWRF Loan Amount (20 years) $875,625 <br />DWRF Loan Annual Payment $61,245 <br />Current Monthly Water Rate (Incl. base rate, system fee, and aver. use) $62 <br />Future Monthly Water Rate $62* <br />Monthly per tap cost of the CWCB loan and DWRF Loan $59.27 <br /> <br />T bl 2 F" . I S <br /> <br />*Both loans will be paid off by an increase in the property tax mill levy. The levy was raised <br />to 10.500 in 2004, and it is anticipated that it will be raised to 14.930 in the future. <br /> <br />e <br /> <br />Creditworthiness: PSWD has two outstanding long-term debts: (1) a general obligation bond <br />issue (1998 - $500,000) with a remaining amount of $360,000 through 2015, and (2) a 1992- <br />$20,000 Impact Assistance Loan through the Department of Local Affairs with a remaining amount <br />of $6,904 through 2008. Combined annual payments on both obligations is about $47,000. <br /> <br />Table 2 shows the Financial Ratios for PSWD and indicates strong ability to cover the CWCB and <br />DWRF loans with the increased property tax, although a number of the other ratios are weak. <br /> <br />Table 3. Financial Ratios <br /> <br />e <br /> <br />Financial Ratio Without With project <br /> the project Future Years <br /> (Aver. 2001-02) (2007+) <br />Operating Ratio (revenue/expense) <br />weak: less than 100% 87% (1) 93% <br />average: 100% - 120% (weak) (weak) <br />stronq: qreater than 120% <br />Debt Service Coverage Ratio <br />(revenues-expenses)/debt service 79% (1) 136% <br />weak: less than 100% (weak) (strong) <br />average: 100% - 125% <br />stronq: q reater than 125% <br />Cash Reserves to Current Expense <br />weak: less than 50% 27% 21% <br />average: 50% - 100% (aver.) (weak) <br />stronq: q reater than 1 00% <br />Debt per Tap (268 taps) <br />weak: greater than $5000 $1590 $12,340 <br />average: $2500 - $5000 (strong) (weak) <br />strona: less than $2500 <br />Monthly Water Bill <br />average: $30 $55 $62 (2) <br />weak: greater than $60 (average.) (weak) <br /> <br />Page 5 of 7 <br />