PROJC02292 ‎(2)‎

• Contract/PO #: C150281
• Contractor Name: Water Supply and Storage Company
• Contract Type: Loan
• Water District: 0
• County: Larimer
• Loan Projects - Doc Type: Approval Letter

The Water Supply & Storage Company
January 20, 2009 (UPDATED JANUARY 28)
Page 6 of 6
Table 2 shows the Financial Ratios for the Company.
Table 2. Financial Ratios
Agenda Item l lb
Financial Ratio Past Years Future
Operating Ratio (revenues/expenses) 122% 117%
(Strong) (Average)
weak: <100% - avera e: 100% - 120% - stron : >120°/ $1.40M/1.15M $1.40M/1.20M
Debt Service Coverage Ratio 192% 111%
(revenues-expenses)/debt service (Strong) (Average)
weak: <100% - avera e: 100% - 120% - stron : >120°/ $1.40-1.15/0.13M $1.40-1.20/0.18M
Cash Reserves to Current Expenses 26% 25%
weak: <50% - avera e: 50% - 100% - stron : >100°/ (Weak)
$0.30/1.15M (Weak)
$0.30/1.20M
Annual Operating Cost per Acre-Foot (55,500 AF) $21/AF $22/AF
eak: >$20 - avera e: $10 - $20 - stron : <$1 (Weak)
$1.15M/SS.SK (Weak)
$1.20M/SS.SK
Collateral -Security for the loan shall be the Company's pledge of assessment revenues backed by
a rate covenant. This is in compliance with CWCB Financial Policy #5 (Collateral).
Staff Recommendation (Approved on January 27, 2009 as recommended)
Staff recommends the Board approve a loan not to exceed $843,350 ($835,000 for project costs and
$8,350 for the 1% Loan Service Fee) to The Water Supply & Storage Company for two
rehabilitation projects, the Grand River Ditch Project and the Kluwer Reservoir Outlet Project from
the Construction Fund Account. The loan terms shall be a blended interest rate of 3.70% per annum
for 30 years. Staff will have the option to utilize two separate contracts which in aggregate will not
exceed the approved limit. Security for the loan shall be in compliance with CWCB Financial
Policy #5.
cc: Dennis Harmon, General Manager
Susan Schneider, AGO
Attachment: Water Project Loan Program -Project Data Sheet