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<br />Republican River Water Conservation District <br />January14, 2008 (UPDATED January 28,2008) <br />Page 6 of6 <br /> <br />Agenda Item 11 d <br /> <br />Table 2 shows the Financial Ratios for the District's revenues. <br /> <br />Table 2. Financial Ratios <br /> <br /> Current Future <br />Financial Ratio w/out Project wI Project <br />Operating Ratio (revenues/expenses) 106% 117% <br />I weak: <100% ~ - I average: 100% - 120% '-I strong: > 120%' (Average) (Average) <br />$2.75M/2.60M $7.25M/6.18M <br />Debt Service Coverage Ratio 126% <br />(revenues-expenses)/debt service N/A (Strong) <br />I weak: <100% 1- I average: 100% - 120% I-I strong: >120%1 $5. 15M/4.08M <br />Cash Reserves to Current Expenses 50% 54%* <br />I weak: <50% 1- I average: 50% - 100% 1- 1 strong: > 100%1 (Average) (Average) <br />$1.0M/2.0M $3.34M/6.18M <br />Annual Operating Cost per Acre-Foot (based on 15,000 AF) $412/AF <br />Iweak: >$20 I-I average: $10 - $20 I-I strong: <$101 N/A (Weak) * * <br /> $6.18M/15K <br /> <br />* Cash Reserves are expected to increase $1,000,000 per year <br />** Comparisons not accurate since this is Compact water delivery <br /> <br />Collateral: Security for the CWCB loan shall include: 1) A pledge of the District's Enterprise revenues. The <br />pledge shall be backed by a rate covenant and annual financial reporting. 2) The water rights purchased as <br />part of the Project. This security is in compliance with CWCB Financial Policy 5 (Collateral). <br /> <br />Staff Recommendation (Board Approved Staff Recommendation on January 22, 2008) <br /> <br />Staff recommends the Board approve a loan not to exceed $60,600,000 ($60,000,000 for project costs and <br />$600,000 for the 1 % Loan Service Fee) to the Republican River Water Conservation District acting by and <br />through its Water Activity Enterprise for project costs associated with the Compact Compliance Pipeline <br />Project from the Severance Tax Trust Fund Perpetual Base Account. The loan amount shall at no time <br />exceed 90% of Project expenses. The terms of the loan shall be a 20-year loan at 2.00% per annum. Security <br />for the loan shall be in compliance with CWCB Financial Policy 5. <br /> <br />Staff further recommends that final approval of the loan be conditioned upon all other standard contracting <br />provisions of the CWCR <br /> <br />Email copy: <br /> <br />Dennis Coryell, President <br />Stan Murphy, District General Manager <br />Dennis Montgomery, Legal Counsel <br />James Slattery, PE, Slattery Aqua Engineering <br />Amy Stengel, AGO <br /> <br />Attachment: Water Project Construction Loan Program - Project Data Sheet <br />