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Town of Windsor <br />September 13, 2013 (Updated September 30, 2013) <br />Page 5 of 5 <br />Agenda Item 30a <br />Financial Analysis <br />Table 4 provides a summary of the Project's financial aspects. The term of the loan will be 20 -years <br />and the interest rate will be the corresponding high- income municipal rate of 2.75 %. This rate is <br />reduced by 0.25% for a 20 -year term per CWCB Financial Policy #7. <br />TABLE 4: FINANCIAL SUMMARY <br />Total Project Cost <br />$6,300,000 <br />Borrower Contribution <br />$1,800,000 <br />CWCB Loan <br />$4,500,000 <br />CWCB Loan Includin 1% Service Fee) <br />$4,545,000 <br />CWCB Annual Loan Payment <br />$298,478 <br />CWCB Loan Obligation (including 10% debt reserve funding) <br />$328,326 <br />Monthly Cost of Loan per Tap (5,604 taps) <br />$4.88 <br />Creditworthiness: The Town's Water Activity Enterprise has no existing debt. <br />TABLE 5: FINANCIAL RATIOS <br />Collateral - Security for this loan will be a pledge of Water Activity Enterprise revenues backed by <br />a rate covenant and annual financial reporting. This security is in compliance with CWCB Loan <br />Policy #5 (Collateral). <br />cc: Dean Moyer, Director of Finance, Town of Windsor <br />Susan Schneider /Jennifer Mele, Colorado Attorney General's Office <br />Attachment: Water Project Loan Program — Project Data Sheet <br />Future <br />Financial Ratio <br />Past 2 Years <br />w/ Project <br />Operating Ratio (revenues /expenses) <br />142% <br />128% <br />(Strong) <br />(Average) <br />weak: <100% - [average: 100% - 120% - stron : >120% <br />NNUMMA <br />$3.7M/2.6M <br />$3.7M/2.9M <br />Debt Service Coverage Ratio <br />367% <br />(revenues- expenses) /debt service <br />N/A <br />(Strong) <br />($3.7M -2.6M) <br />weak: =00/. - avera e: 100% - 120% - stron . >12L <br />$0.3M <br />Cash Reserves to Current Expenses <br />162% <br />83% <br />weak: <50% - avera e: 50% - 100% - strong: >100% <br />(Strong) <br />$4.2M/2.6M <br />(Average) <br />$2.4M/2.9M <br />Debt per Tap (Based on 5,604 Taps) <br />$811 <br />weak: >$5,000 - [average: $2,500 - $5,000 - stron : <$2,500 <br />N/A <br />(Strong) <br />$4.545M/5,604 <br />Average Monthly Water Bill <br />$45 <br />$45 <br />avera e: $30 - $60 - stron : >$3 <br />(Average) <br />(Average) <br />Collateral - Security for this loan will be a pledge of Water Activity Enterprise revenues backed by <br />a rate covenant and annual financial reporting. This security is in compliance with CWCB Loan <br />Policy #5 (Collateral). <br />cc: Dean Moyer, Director of Finance, Town of Windsor <br />Susan Schneider /Jennifer Mele, Colorado Attorney General's Office <br />Attachment: Water Project Loan Program — Project Data Sheet <br />