Laserfiche WebLink
Church Ditch Water Authority <br />October 18, 2013 (Updated October 21, 2013) <br />Page 4 of 4 <br />Financial Analysis <br />Agenda Item 8j <br />Table 3 provides a summary of the Project's financial aspects. The first three years of the loan will <br />be assessed a 0% interest rate. The remaining term of the loan will be assessed a blended interest <br />rate of 2.85% with the principal amortized over 27 -years (Ownership: 6% Agriculture, 28% Mid <br />Municipal, 67% High Municipal, <1% Commercial). Staff is recommending an exemption to <br />Financial Policy #11 to allow for 100% funding of eligible Project costs. <br />TABLE 3: FINANCIAL SUMMARY <br />Total Project Cost <br />$600,000 <br />CWCB Loan Amount (100% of total Project cost) <br />$600,000 <br />CWCB Loan Amount (Includin 1% Service Fee) <br />$606,000 <br />CWCB Annual Loan Payment <br />$32,480 <br />CWCB Loan Obligation (Includin 10% Reserve) <br />$35,728 <br />Number of Inches <br />5710.64 <br />Annual Cost Per Inch for Loan <br />$6.26 <br />Current Assessment per Inch <br />$90 <br />Future Assessment per Inch <br />$135* <br />* Future assessment represents an existing (pre -flood) approved rate increase. A special <br />assessment for debt service can be assessed by the Authority as needed. <br />Creditworthiness: The Authority has no existing debt. <br />TABLE 4: FINANCIAL RATIOS <br />Financial Ratio <br />Past 3 Years <br />Future <br />w/ Project <br />Operating Ratio (revenues /expenses) <br />83% <br />124% <br />(Weak) <br />(Strong) <br />weak: <100% vera e: 100% - 120% tron : > 120 ° / <br />$485K/$584K <br />$771K/$620K <br />Debt Service Coverage Ratio <br />519% <br />(revenues- expenses) /debt service <br />No Existing <br />(Strong) <br />Debt <br />$771K -$584K <br />weak: <100% vera e: 100% - 120% stron g: >120% <br />$36K <br />Cash Reserves to Current Expenses <br />85% <br />72% <br />--1 <br />(Average) <br />(Average) <br />weak: <50% vera e: 50% 000/ stron : >I 00% <br />$499K/$584K <br />$449K/$620K <br />Annual Operating Cost per Acre -Foot (8,355 AF) <br />$70 <br />$74 <br />eak: >$20 vera e: $10 - $20 U stron : <$1 <br />(Weak) <br />AF <br />(Weak) <br />$620K/8K AF <br />$584K/8K <br />1 <br />Collateral: As security for the loan, the Authority will pledge its assessment revenues backed by a <br />rate covenant. This is in compliance with the CWCB Financial Policy #5 (Collateral). <br />cc: Raymond Reling, President, Church Ditch Water Authority <br />Susan Schneider /Jennifer Mele, Colorado's Attorney General Office <br />Attachment: Water Project Loan Program — Project Data Sheet <br />