C150262 Approval Letter - Laserfiche WebLink

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., Table 3. F'inancial Ratios Financial Ratios Without Project With Project Operating Ratio (revenues/expenses) 113% (Average) 106% (Average) I weak: <100% , -I average: 100% - 120% I-I strong: > 120%1 $51OK/452K $510K/480K Debt Service Coverage Ratio 289% (Strong) 139% (Strong) (revenues-expenses)/debt service $(539K-452K)/ $(53 9K -480K)/ I weak: <100% I-I average: 100% - 120%' -I strong: >120%' 30K 43K Cash Reserves to Current Expenses 31% (weak) 23%(Weak) I weak: <50% I-I average: 50% - 100% I-I strong: > 1 OO%~ $148K/483K $ 120K/525K Debt per Tap (based on 1,100 taps) $ 145(Strong) $374 (Strong) !weak: >$5000 ~ -I average: $5K - $2.5K I-I strong: <$2500~ $159K/1100 $412K/1100 Monthly Residential Water Bill $27,72 $27.72* !weak: >$60 I-I average: $60 - $301- ~g: <$301 (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 (Board approved the Staff Recommendation on January 22,2008) 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 ofBennert 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 CWCR cc: Matt Reay, Bennett Town Administrator Theresa Jehn-Dellaport, Jehn Water Consultants, Inc. Amy Stengel, AGO Attachment: Project Data Sheet 5