PROJ01946 (3) - Laserfiche WebLink

Home Browse Search

J: . " Poudre Tech Metropolitan District November 25-26, 2002 Agenda Item 20i. (Updated December 4, 2002) or interest due until 2006, at which time the entire amount becomes due and payable. The due date for this loan may be extended upon mutual agreement of the parties. Table 3 shows the Financial Ratios for PTMD, excludina the debt owed to Trollco. Inc. (The CWCS debt would be in a senior position.) With the exception of Cash Reserves, all ratios are in the average and strong categories. Table 2. Financial Ratios-PTMD Financial Ratio Without With The project The Droiect Operating Ratio (revenue/expense) 136% 136% weak: less than 100% (strong) (strong) average: 100% - 120% strona: areater than 120% Debit Service Coverage Ratio (excluding Trollco) No debt 152% (revenues-expenses )/debt service (strong) (strong) weak: less than 100% average: 100% - 125% strona: areater than 125% Monthly Residential Water Sill* $36* $36* weak: greater than $60 (average) (average) average: $30 - $60 strona: less than $30 Cash Reserves to Current Expense 68% 44% weak: less than 50% (average) (weak) average: 50% - 100% strona: areater than 100% *This includes $12.50 for irrigation water, and $23.50 for potable water. As security for the loan the PTMD will pledge tax revenues backed by rate covenant. Trollco Inc. (The Developer) will pledge water rights as added collateral. Total security pledged will be in compliance with CWCS Loan Policy #5 (Collateral). Recommendation (Revised) Staff recommends a loan in a maximum amount of $2,180,000 to the Poudre Tech Metropolitan District. The loan is for up to 75% of the costs of a project to construct a dual water system for outside irrigation. The recommended loan terms are 30 years at 4.75% or 20 years at 4.5% at the borrower's option. As security for the loan, the CWCS will receive collateral in accordance with CWCS Loan Policy #5. (Poudre Tech Metro District will pledge revenues backed by rate covenant and Trollco Inc., the Developer, will pledge water rights valued at least equal to the loan amount.) The loan will be funded from the Construction Fund. Staff recommends that the District be allowed to use this loan to refinance project costs already completed and paid for with short term bridge financing. Staff further recommends that final approval of the loan be conditioned upon all other standard contracting provisions of the CWCS. Action taken bv the CWCB November 26. 2002 The CWCS approved the (Revised) Staff Recommendation above, with added language clarifying security for the loan. cc: Russ Sanford, Poudre Tech Metropolitan District Linda Bassi, AGO Attachment C:\PTMD 1102 memo L:\wctrans\boardmem~nov02\20i Poudre Tech MD 4