20 ‎(3)‎

• Board Meeting Date: 3/18/2008
• Description: CF Section - Changes to Existing Loans - Pinewood Springs Water District - System Rehabilitation Project
• Board Meetings - Doc Type: Memo

Table 3 is a summary of the financial aspects of the project. The revised CWCB loan of $2,811,689,
which includes the 1% loan service fee, would have an annual payment of $178,860 (including the 10%
reserve requirement) at the loan terms of 4.0% for 30 years. The current approved loan amount of
$2,054,189 has an annual payment of $130,673 (including the 10%reserve requirement).
Table 3. Financial Summary
Total Project Cost $4,059,500
Number of Ta s Issued 268
CWCB Loan Amount (30 years) $2,811,689
CWCB Loan Pa ment (includes 10% reserve) $178,860
Current Monthl Water Rate (Incl. base rate, s stem fee, and aver. use) $58
Future Monthly Water Rate $58
All existing District loans will be paid off by an increase in the property tax mill levy. The levy was
raised to 10.5 in 2004, and it is anticipated that it will be raised to 23.4 in the future.
Creditworthiness: The District has two outstanding long-term debts: (1) a general obligation bond
issued in 1998 for $500,000, with an outstanding balance of $250,000 through 2015, with an annual
payment of approximately $33,000, and (2) a 2004 and 2006 CWR&PDA loan, having a combined
outstanding balance of $821,992, with a combined annual payment of $61,245.
Table 4 shows the Financial Ratios for the District and indicates an overall strong to average ability to
cover the CWCB and DWRF loans with the increased property tax.
Table 4. Financial Ratios
Financial Ratio Current With Amended
Project Project
(2007) (2008+)
Operating Ratio (revenue/expense)
weak: less than 100% 93% 124%
average: 100% - 120% strong: greater than 120% (weak) sti'on )
Debt Service Coverage Ratio
(revenues-expenses)/debt service 136% 135%
weak: less than 100% (strong) (strong)
average: 100%- 125% strong: greater than 125%
Cash Reserves to Current Expense
weak: less than 50% 21% 160%
average: 50% - 100% strong: greater than 100% (average) (strong)
Debt per Tap (268 taps)
weak: greater than $5000 $12,340 $14,490
average: $2500 - $5000 strong: less than $2500 (weak) (weak)
Monthly Water Bill
average: $30 $62 $58
weak: greater than $60 (average) (average)
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Flood Protection • Water Project Planning and Financing • Stream and Lake Protection
Water Supply Protection • Conservation Plaxu~ing