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f.~~ 1 , Little Thompson Water District - Proposed Dry Creek Reservoir September 13-14, 2005 Table 1. Financial Summary Agenda Item 12a $10,800,000 7990 $3,937,500 $320,1'14 $4,945,500 $386,240 $48.00 $7.::,6 $159.63 $2,441 Creditworthiness: In 2004, L TWO undertook two water refunding bond issues that will save them approximately $340,000 per year. As of December 31,2004, L TWO's long-term debt was $18,928,783 as listed below: Lona-Term Debt 1999 Water Revenue Bond 2002 Water Revenue Bond 2004 Water Rev. Refunding Bond 2004B Water Rev. Refunding Bond 1992 CWR & PO Loan 1998 CWR & PO Loan Annual Payment due in 2006 $381,523 208,645 258,658 230,213 221 ,490 284.270 $1.584,799 Total Principal Balance $4,100,000 3,145,000 4,635,000 5,085,000 845,000 1.118.783 $18,928,783 Maturitv Date 20H} 20211 2014 2020 200B 200B The above numbers do not include the CWCB existing loan draw to date of $2,006,700. The District is in compliance with the 1999, 2002, and 2004 bond revenue requimments and the 1992 and 1998 loan revenue requirements. CWCB will require parity of its lien on the plE~dged water revenues with these bonds and loans. Table 2 shows the Financial Ratios for the District, without considering tap fee revenues, lexcept as shown. The ratios indicate overall average ability to repay both CWCB loans, with future water rate increases. The L TWO plans to raise their water rates about 10% for the next several years. This revenue increase is reflected in the future year financial ratios. Table 2. Financial Ratios Financial Ratio Without With project the project Future Yeclr (Aver. 2003-04) 2008+ Operating Ratio (revenue/expense) weak: less than 100% 144% 185% average: 100% - 120% (strong) (strong) strong: greater than 120% Debt Service Coverage Ratio (revenues-expenses )/debt service 100* 101% weak: less than 100% (aver. ) (aver) average: 100% - 125% stronQ: greater than 125% Page 5 of 6