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Cottonwood Water&Sanitation District Agenda Item 30a <br /> May 9,2014(Updated May 23,2014) <br /> Page 7 of 7 <br /> Creditworthiness: Per the District's 2012 financial statements,the District has $21.4M in outstanding <br /> debt. None of its debt is tied to water activity enterprise revenues. <br /> TABLE 5: EXISTING DEBT <br /> Lender Original Current Annual Maturity Collateral <br /> Balance Balance Payment Date <br /> Series 2006A Bonds $ 9,825,000 $ 7,395,000 $ 635,000 12/1/2020 Property Tax Levy <br /> CWRPDA $ 9,996,005 $ 8,242,995 $ 450,617 8/1/2027 Property Tax Levy <br /> Series 2008A Bonds $ 6,730,000 $ 5,800,000 $ 275,000 2027 Property Tax Levy <br /> Totals I $ 26,551,005 I $ 21,437,995 I $ 1,360,617 <br /> TABLE 6: ENTERPRISE FINANCIAL RATIOS <br /> Past 3 Years Future <br /> Financial Ratio w/Project <br /> Operating Ratio(revenues/expenses) 104% 102% <br /> weak: <100%I- average: 100%- 120% - stron_: >120% (average) (average) <br /> $3.2M/$3.1M $3.4M/$3.4M <br /> Debt Service Coverage Ratio 100% <br /> (revenues-expenses)/debt service NA (average) <br /> weak: <100% - average: 100%- 120% - strong: >120% ($3.4M-$3.1M) <br /> /$0.3M <br /> Cash Reserves to Current Expenses 42% 33% <br /> weak: <50% - average: 50% - 100%I- strong: >100% (Weak) (weak) <br /> $1.3M/$3.1M $1.1M/$3.4M <br /> $1,960 <br /> Debt per Tap(2300 SFEs) (Strong) <br /> weak: >$5,000 - average: $2,500 - $5,000 I- stron_: <$2,501 NA $4.5M/2300 <br /> SFEs <br /> Monthly Residential Water Bill $54 $62 <br /> (weak: >$60 I- average: $30- $60 I- strong: <$30 (average) (weak) <br /> Collateral- Security for this loan will be a pledge of the District's water activity enterprise revenues <br /> backed by a rate covenant as evidenced by annual financial reporting. Parity status will be required <br /> with all existing revenue-secured loans. This security is in compliance with CWCB Loan Policy#5 <br /> (Collateral). <br /> cc: Patrick Mulhem, General Manger, Cottonwood Water& Sanitation District <br /> Eric Hecox, Executive Director, South Metro Water Supply Authority <br /> Susan Schneider/Jennifer Mele, Colorado Attorney General's Office <br /> Attachment: Water Project Loan Program—Project Data Sheet <br />