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Town of La Veta <br />January 13, 2012 (Updated January 31, 2012) <br />Page 5 of 5 <br />TABLE 4: FINANCIAL RATIOS <br />Agenda Item 26a <br />Rs <br />x <br />r <br />'� <br />�� N.t s. <br />S ture= . <br />,i ��� <br />�F nanebtl Ratio _ <br />2001 010 <br />� <br />Pro ect <br />a.. u.. . F n <br />Operating Ratio (operating revenues /operating expenses) <br />135% <br />124% <br />weak: <100% - average: 100% - 120% - strong: >120°/ <br />(strong) <br />(strong) <br />$309K/$229K <br />$309K/$250K <br />Debt Service Coverage Ratio <br />260% <br />183% <br />(total eligible revenues - operating expenses) /total debt service <br />(strong) <br />(strong) <br />weak: <100% - average: 100% - 120% - strong: >120°/ <br />$(309K- 179K)/$50K <br />247% <br />$(309K- 179K) /$71K <br />210% <br />Cash Reserves to Current Expenses <br />weak: <50% - average: 50% - 100% - strop . >100 °/ <br />(strong) <br />(strong) <br />$566K/$229K <br />$525K/$250K <br />Average Residential Water Bill (monthly) <br />$41.54 <br />$44.55 <br />eak: >$60 1 - I average: $30 76-01 -strop . <$3 <br />(average) <br />(average) <br />Debt Per Tap (based on 580 taps) <br />$1,897 <br />$2,534 <br />(strong) <br />(average) <br />eak: >$5,000 - average: $2,500 - $5,000 - strong: <$2,50 <br />$1.10M/580 <br />$1.47M/580 <br />Collateral: As security for the loan, the Town's Enterprise will pledge its assessment revenues <br />backed by a rate covenant. This is in compliance with the CWCB Financial Policy #5 (Collateral). <br />The pledge and covenant are contractual provisions requiring the Town to pay its CWCB debt <br />obligation from Enterprise revenues; and requires the Town to set its water usage rates sufficient to <br />fund its debt obligation, in addition to operation and maintenance expenses. <br />cc: Donald Keairns, Mayor, Town of La Veta <br />Susan Schneider, AGO <br />Peter Johnson, AGO <br />Attachment: Water Project Loan Program — Project Data Sheet <br />