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<br />Central Weld County Water District - Proposed Dry Creek Reservoir <br />November 25-26, 2002 <br /> <br />Agenda Item 209 <br /> <br />Table 2 shows the Financial Ratios for the District and indicates strong financial condition and <br />strong ability to repay the $3,937,500 CWCS loan. CWCWD does not plan to raise their water <br />rates, as their current rate structure provides adequate revenue in excess of expenses. <br /> <br />Table 2. Financial Ratios <br /> <br />Financial Ratio Without With project <br /> the project Future Year <br /> (Aver. 1999-01) <br />Operating Ratio (revenue/expense) <br />weak: less than 100% 204% 208% <br />average: 100% - 120% (strong) (strong) <br />strana: areater than 120% <br />Debit Service Coverage Ratio <br />(revenues-expenses)/debt service 196% 137% <br />weak: less than 100% (strong) (strong) <br />average: 100% - 125% <br />strana: areater than 125% <br />Cash Reserves to Current Expense <br />weak: less than 50% 511% 550% <br />average: 50% - 100% (strong) (strong) <br />strano: oreater than 100% <br />Debt per Tap <br />weak: greater than $5000 $374 $789 <br />average: $2500 - $5000 (strong) (strong) <br />strano: less than $2500 . <br />Monthly Water Sill <br />average: $30 $21.50 $21.50 <br />weak: greater than $60 (average) (average) <br /> <br />As security for the loan the District will pledge water revenues backed by a rate covenant and <br />annual financial reporting. This is in compliance with CWCB Loan Policy #5 (Collateral). <br /> <br />Recommendation <br /> <br />Staff recommends a CWCS Joan to Central Weld County Water District, from the Severance Tax <br />Trust Fund - Perpetual Base Account, not to exceed $3,937,500 to construct the proposed Dry <br />Creek reservoir in 50/50 partnership with the Little Thompson Water District. The recommended term <br />of the loan is 20 years and the recommended lending rate is 4.15% per year. Security for the loan will <br />be a pledge of water rate revenues backed by a rate covenant and annual financial reporting. <br /> <br />Staff further recommends that final approval of the loan be conditioned upon all other standard <br />contracting provisions of the CWCS. <br /> <br />cc: John Zadel, General Manager, CWCWD <br />Duane Smith, P.E., Smith Geotechnical <br />Linda Bassi, AGO <br /> <br />Attachment <br /> <br />Page 5 of 7 <br />