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Republican River Water Conservation District <br />November 10, 2008 (UPDATED NOVEMBER 19, 2008) <br />Page 7 of 7 <br />Table 2 shows the Financial Ratios for the District's Enterprise revenues. <br />Table 2. Financial Ratios <br />Agenda Item 26e <br /> Future w/all <br />Financial Ratio Current CWCB Loans <br />Operating Ratio (revenues/expenses) 108% 112% <br /> (Average) (Average) <br />weak: <100% - avera e: 100% - 120% - stron : >120°/ $2.8M/2.6M $7.3M/6.SM <br />Debt Service Coverage Ratio 118% <br />(revenues-expenses)/debt service N/A (Average) <br />weak: <100% - avera e: 100% - 120% - stron : >120°/ $5.2M/4.4M <br />Cash Reserves to Current Expenses 50% 51 %* <br />weak: <50% - avera e: 50% - 100% - stron : >100°/ (Average) <br />$1.OM/2.OM (Average) <br />$3.3M/6.SM <br />Annual Operating Cost per Acre-Foot (based on 15,000 AF) $433/AF <br />** <br />eak: >$20 - avera e: $10 - $20 - stron : <$1 N/A (Weak) <br />$6.SM/i5K <br />* Cash Reserves are expected to increase $1,000,000 per year <br />** Comparisons not accurate since this is Compact water delivery <br />Collateral: Security for the CWCB loan shall include a pledge of the Republican District's <br />Enterprise revenues backed by a rate covenant and annual financial reporting. This security is in <br />compliance with CWCB Financial Policy 5 (Collateral). <br />Staff Recommendation (Board Approved on November 19, 2008) <br />Staff recommends the Board approve a loan not to exceed $4,545,000 ($4,500,000 for the Project <br />costs and $45,000 for the 1 % Loan Service Fee) to the Republican River Water Conservation <br />District, acting by and through its Water Activity Enterprise fora 20 year lease of the surface water <br />rights in the North Fork of the Republican River using funds from the Severance Tax Trust Fund <br />Perpetual Base Account. The loan terms shall be 20 year at an interest rate of 2.25% per annum. <br />Security for the loan shall be in compliance with CWCB Financial Policy 5. <br />Email copy: Dennis Coryell, Republican District President <br />Stan Murphy, Republican District General Manager <br />David Robbins and Dennis Montgomery, Legal Counsel <br />James Slattery, PE, Slattery Aqua Engineering <br />Susan Schneider & Amy Stengel, Colorado Attorney General's Office <br />Attachment: Water Project Construction Loan Program -Project Data Sheet <br />