PROJC02291 (2) - Laserfiche WebLink

Home Browse Search

Park Center Water District January 20, 2009 -Updated January 27, 2009 Page 5 of 6 Table 3 shows the Financial Ratios for the District. Table 3. Financial Ratios Agenda Item l la Financial Ratio Past Years Future Operating Ratio (revenues/expenses) 102% 102% weak: <100% - avera e: 100% - 120% - stron : >120°/ (Average) $791/772K (Average) $846/827K Debt Service Coverage Ratio 125% 115% (revenues-expenses)/debt service (Strong) (Average) weak: <100% - avera e: 100% - 120% - stron : >120°/ $791-700/73K $846-700/127K Cash Reserves to Current Expenses 105% 30% weak: <50% - avera e: 50% - 100% - stron : >100°/ (Strong) (Weak) $808/772K $248/827K Monthly Residential Water Bill $28.00 $31.23 eak: >$60 - avera e: $30 - $60 - stron : <$3 (Strong) (Average) Collateral - As security for the loan, the District will pledge assessment revenues backed by a rate covenant. This is in compliance with CWCB Financial Policy #5 (Collateral). Staff Recommendation (Board Approved Staff Recommendation on January 27, 2009) Staff recommends the Board approve a loan not to exceed $1,010,000 ($1,000,000 for project costs and $10,000 for the 1% Loan Service Fee) to the Park Center Water District acting by and through its Enterprise for its Well Redrilling Project from the Severance Tax Trust Fund Perpetual Base Account. The loan amount at no time shall exceed 90% of the total project expenditures. The loan terms shall be 30 years at an interest rate of 3.5% per annum. Security for the loan shall be in compliance with CWCB Financial Policy #5. Staff further recommends additional approval provisions: 1) Prior to signing a contract with the CWCB, the District must execute an extended lease agreement with the BLM showing a 30 year minimum lease so that the timeframe of the lease meets or exceeds the CWCB debt service repayment schedule. 2) Prior to signing a contract with the CWCB, the District must obtain written approval of the well drilling Project from the BLM as required in its existing lease document. Staff further recommends the following clause be included in the contract: