PROJ01937 ‎(2)‎

• Contract/PO #: C150210
• Contractor Name: Little Thompson Water District
• Contract Type: Loan
• Water District: 4
• County: Larimer
• Loan Projects - Doc Type: Feasibility Study

Little Thompson Water District - Proposed Dry Creek Reservoir
November 25-26, 2002

Agenda Item 20f

Permitting - Preliminary environmental assessments have been completed. There are several
wildlife and plant issues to be addressed, but none that will prevent construction permitting. Initial
archaeological assessment has been conducted and has identified several sites of significance
within one mile of the site. Additional on-site assessment will be required before construction to
determine appropriate mitigation. The reservoir development will require a Corps of Engineers 404
Permit. In order to comply with Department of Wildlife requirements covered by the 404 permit, a
depletion analysis will be necessary to determine effects of the reservoir on the South Platte River.
No significant depletion is expected. The project will be subject to review for special use by Larimer
County. Based on conversations between L TWD and Larimer County, no issues have been
identified that would prevent development of the reservoir. Property issues are currently being
addressed. A total of 23 properties are expected to be affected, only four of which are expected to
have to be purchased in their entirety.

Financial Analvsis

The total estimated cost of the project is $10,500,000 in a 50/50 partnership with the CWCWD, with
each entity borrowing $3,937,500 from the CWCB. The total loan will be for 75% of the estimated
project cost. The District qualifies for a blended Municipal Middle/High Income Interest Rate. Staff
is recommending a 20-year maximum amount of $3,937,500 at an interest rate of 4.05% per year.
The District has budgeted $1,312,500, the 25 percent local match, needed for their portion of the
project, and the money is in place in reserves for that purpose.

Alternative financing sources: The District did consider bonding for this project but opted to
pursue funding through CWCB because of more favorable lending rates.

Table 1 is a summary of the financial aspects of the project. A CWCB Construction Loan of
$3,937,500 would have an annual payment of $320,114 (including the 10% reserve requirement) at
the loan terms of 4.05% per year for 20 years.

Table 1. Financial Summary

$5,250,000
24,500
7642
$3,937,500
$320,114
$27.00
$3.49
$123.12

Creditworthiness: The District currently has three revenue bond issues (1995, 1999,2000) and
two loans with CWR & PDA (1992,1998). with a total remaining amount of $17,208,455, as of
December 31, 2001. Bonds will be retired in 2014, 2019, and 2020 respectively, and loans in 2008.
Annual payments on all bonds and loans total approximately $1.5 million. The District is in
compliance with the rate maintenance requirements of the bond and loans pertaining to revenues
and expenses. CWCS would require parity of pledged water revenues with these bonds and
loans.

Table 2 shows the Financial Ratios for the District, without considering tap fee revenues, except as
shown. The ratios indicate average to strong ability to repay the $3,937,500 CWCB loan, with
future water rate increases. The L TWD raised their water rates 10% in 2002, and adopted an

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