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Parkville Water District <br />May 11, 2010 <br />Page 5 of 5 <br />Agenda Item 14c <br />Creditworthiness: The District currently has one short-term loan with Deere Credit, Inc. with a <br />balance of about $80,000 ($35,000 annually) with a maturity date of November 2012. This debt <br />service will expire around the time of the first CWCB loan repayment. <br />Table 2. Financial Ratios for the Reservoir District <br />Past Years Future <br />Financial Ratio (2012) <br />Operating Ratio (revenues/expenses) 114% 100% <br />weak: <100% - avera e: 100% - 120% - stron : >120°/ (Average) (Average) <br />$980K/860K $980K/977K <br />Debt Service Coverage Ratio 443% 102% <br />(revenues-expenses)/debt service (Strong) (Average) <br />weak: <100% - avera e: 100% - 120% - stron : >120°/ $980-825/35K $980-825K/152K <br />Cash Reserves to Current Expenses 23%* 20%* <br />weak: <50% - avera e: 50% - 100% - stron : >100°/ (�'�'eak) (weak) <br />$200K/860K $200K/977K <br />Average Monthly Residential Water Bill $26/Month $29/Month <br />eak: >$60 - avera e: $60 - $30 - stron � <$3 (Strong) (Sh <br />* Low due to a recent dam improvement project and significant number of watermain breaks <br />Collateral - Security for the CWCB loan will be a pledge of its water revenues backed by a rate <br />covenant and a.nnual financial reporting. This is in compliance with CWCB Financial Policy #5 <br />(Collateral). <br />Staff Recommendation (Board approval on May 18, 2010 with added Contract Condition) <br />Staff recommends the Board approve a loan not to exceed $1,838,200 ($1,820,000 for project costs <br />and $18,200 for the 1% Loan Service Fee) to the Parkville Water District for the Canterbury Tunnel <br />Repair Project from the CWCB Construction Fund. The loan terms shall be the Low-Income <br />Municipal interest rate of 4.0% per annum for 30 years. Security for the loan shall be in compliance <br />with CWCB Financial Policy #5. <br />Contract Condition — District shall receive approval by the Division of Water Resources of a <br />Substitute Water Supply Plan for the proposed well prior to disbursements of loan funds. <br />cc: Greg Teter, District Manager <br />Bret Swigle, PE, WW Wheeler & Associates, Project Manager <br />Susan Schneider, AGO <br />Attachment: Water Project Loan Program — Project Data Sheet <br />