26a

• Board Meeting Date: 11/19/2008
• Description: CF Section - New Project Loans - Center of Colorado Water Conservancy District - James Tingle Reservoir
• Board Meetings - Doc Type: Memo

Center of Colorado Water Conservancy District Agenda Item 26a
November 10, 2008
Page 4 of 4

Creditwor thiness : The District currently is funded by a 1.0 mill ad valorem tax and vote d in
November 2008 to approve a multi - year debt for the Project . The District has two outstanding
loans:
Lender Balance Annual Pmt Maturity Date
Frida Bargas and Frida Wahl Tr ust $2,090,000 * $32,285 6/2019
Park C ounty Land & Water Trust $46,666 $23,333 ** 9/2009

* P er agreement dated April 10, 2003, Centennial i s responsible f or $193,646 towards the annual repayment.
** S ince this loan will be paid off prior to the Dis trict making a CWCB loan repayment debt service was ignored.

Table 2 shows the Financial Ratios for the District .

Table 2. Financial Ratios
Past Years Future
Financial Ratio
172 % 150 %
Operating Ratio (revenues/expenses)
( Strong ) ( Strong )
weak: <100% - average: 100% - 120% - strong: >120%
$6 90 /400 K $ 6 90 /460 K
Debt Service Coverage Ratio
196% 164 %
(revenues - expenses)/debt service
( Strong) ( Strong )
$6 90 - 100/300 K $ 69 0 - 100/360 K
weak: <100% - average: 100% - 120% - strong: >120%
10 % 109 %
Cash Reserves to Current Expenses
( Weak ) ( Strong )
weak: <50% - average: 50% - 100% - strong: >100%
$ 40/400 K $ 500/460 K
$ 4,100/AF $ 2,730 /AF
Annual Operating Cost per Acre - Foot

( Weak ) * ** ( Weak ) ** *
weak: >$20 - average: $10 - $20 - strong: <$10
$ 123 K/ 3 0 $ 183 K/ 67
***

Based on fully consumable water in augmentation plan (Weak status is not representative).

Collateral - As security for the loan, the District will pledge its tax assessment revenues . This is in
compliance with CWCB Financial Policy #5 (Collat eral) .

Staff Recommendation

Staff recommends the Board approve a loan not to exceed $454,500 ($450,000 for project costs and
$4,500 for the 1% Loan Service Fee) to the Center of Colorado Water Conservancy District for the
construction of the James Tingle Reservoir from the Severance Tax Trust Fund Perpetual Base
Account . The loan terms shall be 1 0 year s at an interest rate of 3.5% per annum. This rate is
reduced by 0.5% from the current middle income municipal, 30 year, 4.0% interest rate. Security
for th e loan shall be in compliance with CWCB Financial Policy #5.

cc: Daniel J. Drucker, President, Center of Colorado WCD
James W. Culichia , Felt, Monson, & Culichia
Amy Stengel, AGO

Attachment: Water Project Loan Program Project Data Sheet