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<br />Upper Arkansas Water Conservancy District <br />November 9, 2004(Revised November 24,2004) <br />Page 4 of 4 <br /> <br />Agenda Item 14c <br /> <br />Table 2 shows the Financial Ratios for the District. Annual operating cost per acre-foot is weak, <br />however, all other ratios are average to strong. <br /> <br />Table 2. Financial Ratios <br /> <br />Financial Ratio Without Proj'ect With Project <br />Previous Years Future Years* <br />Operating Ratio (revenues/expenses) 215% 257% <br />I weak: <100% I-I average: 100% - 120%1-1 strong: >120%1 (Strong) (Strong) <br /> . <br />Debit Service Coverage Ratio 396% 229% <br />(revenues-expenses )/debt service <br />(weak: <100%1- I averaoe: 100% - 120%1- I strano: >120%. (Strong) (Strong) <br /> . <br />, <br />Cash Reserves to Current Expenses 200% 93% <br />I weak: <50% I-I average: 50% - 100% I-I strong: >100%1 (Strong) (Average) <br />Annual Operating Cost per Acre-Ft. (200 AF)** $1,940 $2,770 <br />~eak: >$20 t -I average: $10 - $20 I-I strong: <$101 (Weak) (Weak) <br /> , <br /> <br />* Ratios are analyzed for year 2008 (based on best possible. completion schedule) <br />** Cost per acre-foot is based on consumptive use for augmentation plan <br /> <br />Collateral: As security for this toan, the District will pledge revenues backed by a rate covenant and <br />annual financial reporting. This security is in compliance with CWCB Loan Policy #5 (Collateral). <br /> <br />Staff Recommendation <br /> <br />Staff recommends a loan not to exceed $3,009,800 ($2,980,000 for pr6ject costs and $29,800 for the <br />1 % Loan Service Fee) to the Upper Arkansas Water Conservancy Dis~rict acting by and through the <br />District's Water Activity Enterprise Fund for engineering and construction costs associated with the <br />North Fork Reservoir Rehabilitation and Expansion Project, from the Severance Tax Trust Fund <br />Perpetual Base Account. The terms shall be based on a blended rate of 3.0% per annum for a 30-year <br />term. Final approval of the loan shall be conditioned upon all standard contracting provisions of the <br />CWCB Loan Program. Security for the loan shall be collateral in compliance with CWCB Loan Policy <br />#5. <br /> <br />Action Taken bv the CWCB on November 17 , 2004 <br />The Colorado Water Conservation Board approved the Staff Recc>mmendation as written above. <br /> <br />Email copy: <br /> <br />Ralph (Terry) Scanga, General Manager <br />Amy Stengel, AGO <br /> <br />Attachment: Water Project Construction Loan Program - Project Data Sheet <br />