11b

• Board Meeting Date: 1/22/2008
• Description: CF Section – Construction Fund and Severance Tax Trust Fund Perpetual Base Account – New Loans - Town of Bennett - Well #5 Replacement Project
• Board Meetings - Doc Type: Memo

Table 3. Financial Ratios
Financial Ratios Without Project With Project
Operating Ratio (revenues/expenses) 113% (Average) 106% (Average)
weak: Q00% - avera e: 100%- 120% - stron : >120°/
$SlOK/452K $510K/480K
Debt Service Coverage Ratio 289% (Strong) 139% (Strong)
(revenues-expenses)/debt service
weak: <100% - average: 100%- 120% - strong: >120°/ $(539K-452K)/ $(539K-480K)/
30K 43K
Cash Reserves to Current Expenses 31% (weak) 23%(Weak)
weak: 'S0% - avera e: 50% - 100% - stron : >100°/
$148K/483K
$120K/525K
Debt per Tap (based on 1,100 taps) $145(Strong) $374 (Strong)
eak: >$5000 - avera e: $SK - $2.5K - stron $2500
$159K/1100 $412K/1100
Monthly Residential Water Bill $27 72 $27 72*
eak: >$60 - average: $60 - $30 - strong: <$30 (Strong) (Strong)
* Bennett does not expect to raise monthly water rates to cover CWCB loan
Collateral -Security for the CWCB loan will be a pledge of Water Enterprise revenues. The
pledge shall be backed by a rate covenant and annual financial reporting. This is in compliance
with CWCB Financial Policy #5 (Collateral).
Recommendation
Staff recommends a loan not to exceed $252,500 ($250,000 for project costs and $2,500 for the 1%
Loan Service Fee) to the Town of Bennett acting by and through its Water Enterprise Fund for
project costs (not to exceed 90% of the total cost) to replace Well #5 from the Construction Fund.
The recommended terms of the loan are 30 years at 3.50% per annum. Security for the loan will be
per the CWCB Financial Policy #5.
Staff further recommends that final approval of the loan be conditioned upon all other standard
contracting provisions of the CWCB.
cc: Matt Reay, Bennett Town Administrator
Theresa Jehn-Dellaport, Jehn Water Consultants, Inc.
Amy Stengel, AGO
Attachment: Project Data Sheet