26e

• Board Meeting Date: 11/19/2008
• Description: CF Section - New Project Loans - Republican River Water Conservation District - North Fork Water Rights Lease
• Board Meetings - Doc Type: Memo

Republican River Water Conservation District Agenda Item 26e
November 10 , 2008
Page 7 of 7

Table 2 shows the Financial Ratios for the r evenues.

Table 2. Financial Ratios
Fut ure w/ all
Current
Financial Ratio
CWCB Loans
108 % 112 %
Operating Ratio (revenues/expenses)
(Average) (Average)
weak: <100% - average: 100% - 120% - strong: >120%
$2.8 M/ 2.6 M $7.3 M/ 6.5 M
Debt Service Coverage Ratio
118 %
(revenues - expenses)/debt service
N/A (Average)
$5.2 M/ 4.4 M
weak: <100% - average: 10 0% - 120% - strong: >120%
50 % 51 % *
Cash Reserves to Current Expenses
( Average ) (Average)
weak: <50% - average: 50% - 100% - strong: >100%
$1.0 M/ 2.0 M $ 3.3 M/ 6.5 M
$433 / AF
Annual Operating Cost per Acre - Foot (based on 15,000 AF)
N/A (Weak) **
weak: >$ 20 - average: $ 10 - $2 0 - strong: <$ 10
$6.5 M/ 15K
* Cash Reserves are e xpected to increase $1,000,000 per year
** Comparisons not accurate since this is Compact water delivery

Collateral: Security for the CWCB loan sha ll include a pledge of the Republican District
Enterprise revenues backed by a rate covenant and annual financial reporting. This security is in
compliance with CWCB Financial Policy 5 (Collateral) .
Staff Recommendation

Staff recommends the Board appr ove a loan not to exceed $ 4,545 ,000 ($ 4,5 00,000 for the Project
costs and $ 45, 000 for the 1% Loan Service Fee) to the Republican Ri ver Water Conservation
District , acting by and through its Water Activity Enterprise for a 20 year lease of the surface water
rights in the North Fork of the Republican River using funds from the Severance Tax Trust Fund
Perpetual Base Account. The loan terms shall be 20 year at an interest rate of 2.25% per annum.
Security for the loan shall be in compliance with CWCB Financial Policy 5.

Email copy: Dennis Coryell, Republican District President
Stan Murphy, Republican District General Manager
David Robbins and Dennis Montgomery, Legal Counsel
James Slattery , PE, Slattery Aqua Engineering
Susan Schneider & Amy Stengel, Colorad

Attachment: Water Project Construction Loan Program Project Data Sheet