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iri-County Water Conservancy District <br />5epiember 2, 20! 1{CTpdated September 19, 20i i) <br />Page S of 7 <br />....,...., �_ �.ti,r�rn�t�iuAwrnTki CiiMMARY <br />A,genda item 20c <br />This sumrnary is based on the District's assumption of annual power sates at a negortcuea rrn ru�e vj ��. ��J•�•� ��, <br />Bureau lease rate of 50.0�3/kWh, and �&M projected expenses equivalent to those of similar facilities. <br />Creditworthiness: <br />The District has $32.8M in debt remaining to the Bc�'eau for the Dallas Creek Project. Annual <br />payments total $2.18I�1; however, ti�e District has contracts with five ather water praviders that <br />account far 54% of the aru�ual payment. The District collects water usage fees as its primary source <br />of revenue. aver the last three years the operating revenues fvr watsr usage have exceeded <br />operating expenses by an annua� average of $1.1M, generating a surplus that has enabled ihe <br />Dis#rict to grow its cash reserve balance to z�early $1ZM. The District will use these reserves ta <br />cover its portion of the i'roject costs, estimated at $4,172,000. Financing through the CWCB, <br />CWRPDA, and GEO will fund the remaiz�ing t�atance af the project. <br />Upon completion of the Project, the District anticipates that it will be able to se1122,600 MWh <br />annually tiirough its PPA at a rate of $4.OS5 per kWh, generating $1,243,000. With expenses for <br />operating and maintenance estimated at $210,Ofl0, and a Power Pri�viiege lease payment to the <br />Bureau af �6'7,800 (based an a rate of $0.003 per kWh), the District expects power generated <br />reven�ues to �xceed expenses by a rninimum or $965,2(30 over the first 12 mantiis of opexation. <br />Based on the pra,}ected aru3ual increase in O&M (2.5°l0), Bw'eau lease (2.0°l0) and power sale (3%), <br />revenues are axpected to increase at a greater rate than expe�ses over th� Iife raf the groject. The <br />resulting balance will be used for repayment of the CWCB, CWRPDA and GEO debt service <br />(totalin$ 5789,513). Should t�te pawer related income fall short of projectians, the District wiii use <br />the �excess rewenue fr�m vv�ater sales in combination with an increase in water rates to caver its toan <br />obligation ta the CWCB, <br />The life of the facility is expecte� to extend well beyond 50 �!eazs. A.fter repayment of debt, the <br />project will prowic�e ihe District with a lang-term reliable income stream that wiil supplement <br />revenues from water sales, helping to minimize the need fo�r future water rate increases. <br />