C150364 Approval Letter

• Contract/PO #: CT2015-047
• Contract/PO #: C150364
• Contractor Name: Huerfano County Water Conservancy District
• Contract Type: Loan
• Water District: 67
• County: Huerfano
• Loan Projects - Doc Type: Approval Letter

Huerfano County Water Conservancy District
September 13, 2013 (Updated September 26, 2013)
Page 5 of 5
TABLE 3: LOAN FINANCIAL SUMMARY
Agenda Item 30c
Total Project Cost
$3,050,000
WSRA Grant Request (future request)
up to $500,000
Borrower Cash Match
Up to $600,000
CWCB Loan Amount 70% of total Project cost)
$2,200,000
CWCB Loan Amount (including 1% Service Fee )
$2,222,000
CWCB Annual Loan Payment
$102,655
CWCB Annual Loan Obligation (including reserve account)
$112,920
Creditworthiness:
In The District has no existing debt. Beginning in 2013, the District's property tax revenues have
increased from approximately $15,000 annually to $243,600 because of the voter approved increase
in the mill levy.
In addition to the mill levy revenues, the District will also generate revenue from the participating
members of the regional augmentation plan. It estimates it will generate $20,000 per AF in
augmentation sales based on revenues from customers of its current SWSP. At this rate, the annual
augmentation sale revenues are projected to be $200,000. (Note: Because future sales are
speculative, the potential sales revenues are not included in the Future w/ Project financial ratios.)
TABLE 4: FINANCIAL RATIOS
(1) The District currently does not have the cash reserves to cover its portion of the Project cost. It is
anticipating covering the $600,000 borrower match through a WSRA grant and through excess mill
levy revenues over the Project timeframe.
Collateral: As security for the loan, the District will pledge mill levy revenues and will provide
annual financial reporting. This is in compliance with the CWCB Financial Policy #5 (Collateral).
cc: Michael (Sandy) White, Director, Huerfano County Water Conservancy District
Susan Schneider /Jennifer Mele, Colorado Attorney General's Office
Attachment: Water Project Loan Program — Project Data Sheet
Future
Financial Ratio
2011- 2012
w/ Project
Operating Ratio (operating revenues /operating expenses)
100%
183%
(average)
(strong)
weak: <100% - average: 100% - 120% - stron : >120°/
La
$20K/$20K
$244K/$183K
Debt Service Coverage Ratio
197%
(total eligible revenues - operating expenses) /total debt service
N/A
(strong)
weak: <100% 1 - I average: 100% - 120% 1 - I strong: >120%
($244K- $20K) /$113K
Cash Reserves to Current Expenses
10%
0 %(1)
weak: <50% - average: 50% - 100% - stron : >100%
(weak)
$2K/$20K
(weak)
$0/$133K
(1) The District currently does not have the cash reserves to cover its portion of the Project cost. It is
anticipating covering the $600,000 borrower match through a WSRA grant and through excess mill
levy revenues over the Project timeframe.
Collateral: As security for the loan, the District will pledge mill levy revenues and will provide
annual financial reporting. This is in compliance with the CWCB Financial Policy #5 (Collateral).
cc: Michael (Sandy) White, Director, Huerfano County Water Conservancy District
Susan Schneider /Jennifer Mele, Colorado Attorney General's Office
Attachment: Water Project Loan Program — Project Data Sheet