C150122 Feasibility Study

• Contract/PO #: C150122
• Contractor Name: Central Weld County Water District
• Contract Type: Loan
• Water District: 4
• County: Larimer
• Bill Number: SB 03-110
• Loan Projects - Doc Type: Feasibility Study

I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I

CWCWD FINANCIAL PLAN

The CWCWD has cash reserves of approximately $ 7,863,231 which is well in
excess of the amount required for their 25% share of the project. CWCWD does
not plan to raise their water rates as their current rate structure provides for
revenue in excess of expenses by approximately 100% or approximately
$1,000,000 each year.

Credit Worthiness

The CWCWD is sound financially with regard to the funds required for the project
and for repayment of the loan. The District currently has two revenue bonds with
the Colorado Water Resources ano Power Development Authority; one with a
remaining amount of $2,455,000 maturing in 2007; the second with a remaining
amount of $1 ,098,410 maturing in 2012. The annual payments on the two bonds
is $625,570 and the District is in compliance with covenants of the bond
resolution pertaining to revenues and expenses. The two series of bonds were
both rated "AAA" by Standard & Poor's. The CWCB will require parity of pledged
water revenues with these bonds.

Alternative Financing

The CWCWD ha~ considered bonding for this project but rejected this method of
financing and opted to pursue financing through the Colorado Water
Conservation Board. Their current water rate structure will support the loan
repayment for the project and thus they have not considered provide funding
through a mill levy on property taxes.

OPINION OF FEASIBILITY

There do not appear to be significant roadblocks which would keep the two
Districts from successfully completing this project. The project is feasible from an
engineering perspective and the cost does not require unreasonable increases in
current water rates. The project will require the L TWD raise their water rates in
the range of 11 % to 17% to fund the project. L TWD has considered this and will
address this with their Board of Directors at their annual meeting. The CWCWD
will not have to raise their water rates to fund the project.

The long term benefit to the Districts and their customers for drought protection
and to provide a second source of raw water for their filter plant is significant. A
source of stored water cannot be easily secured in the area at a cost comparable
to approximately $2,700 per acre-foot.

Dry Creek Reservoir Feasibility Study

26