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Northern Colorado Water Conservancy District Agenda Item 34b <br /> May 9,2014(Updated May 23,2014) <br /> Page 6 of 6 <br /> TABLE 4: ENTERPRISE FINANCIAL RATIOS <br /> Average Future <br /> Financial Ratio 2012—2013 w/Project <br /> Operating Ratio(revenues/expenses) 133% . 101% <br /> weak: <100%I- average: 100%- 120%I- stron_: >120% (Strong) (Average) <br /> $55510416K $925K/$918K <br /> Debt Service Coverage Ratio 157%(1) 101% <br /> (revenues-expenses)/debt service (Strong) (Average) <br /> weak: <100% - average: 100% - 120%I- stron_: >120% $555K-174K1 $925K-254K/ <br /> $242K $664K <br /> Cash Reserves to Current Expenses 210% 68%(2) <br /> weak: <50% - average: 50%- 100%I- stron:: >100% (Strong) (Average) <br /> $872K/$416K $622K/$918K <br /> Notes: (1) Existing Debt from Table 3 was not fully into repayment in 2012, so average debt service was used in the <br /> 2012-2013 ratio. (2) Northern Water has paid $335,000 to date and expects to contribute $250,000 towards final <br /> engineering as part of the 10%borrower match requirement. <br /> Collateral: As security for the loan, Northern Water, acting by and through its hydropower <br /> enterprise, will pledge power revenues and will provide annual financial reporting. Because of the <br /> lack of a rate covenant, this is a variance from the CWCB Financial Policy #5 (Collateral). <br /> However, since the borrower is a well established Water Conservancy District with a history of a <br /> successful hydroelectric project, staff is recommending a variance from the policy. <br /> cc: Carl Brouwer, Project Management Department,Northern Water <br /> Susan Schneider/Jennifer Mele, Colorado Attorney General's Office <br /> Attachment: Project Data Sheet <br /> Letter from Michael Brod, CWRPDA Executive Director <br />