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Centennial Water and Sanitation District Agenda Item 29a
<br /> May 9,2014(Updated May 23,2014)
<br /> Page 6 of 7
<br /> Financial Analysis
<br /> The District qualifies for a high-income municipal interest rate of 3.0% for a 30-year term. The
<br /> District will use its cash reserves to fund its required 10%match. Table 3 shows a summary of the
<br /> financial aspects of the Project
<br /> TABLE 3: PROJECT FINANCIAL SUMMARY
<br /> Total Project Cost(33.60% of Reallocation Cost) $48,888,000
<br /> Borrower Match $4,888,000
<br /> Project Loan $44,000,000
<br /> Project Loan(Including 1% Service Fee) $44,440,000
<br /> Project Annual Loan Payment $2,267,296
<br /> Project Annual Loan Obligation(incl. 10% debt reserve) $2,494,025
<br /> Monthly Cost of Loan per Tap (incl. 10%debt reserve) $4.97
<br /> Project Cost per Acre-Foot of Storage (6,922.1 AF) $7,063
<br /> Contracting: In anticipation of a multi-year and multi-phased Project, CWCB may enter into
<br /> multiple contracts under the approved loan limit. This will put the District into repayment on
<br /> completed portions of the Project and allow CWCB to best utilize its loan funds. CWCB will enter
<br /> into all contracts no sooner than September 1, 2014. In recognition of the long time of performance
<br /> for Contracts 2 and 3, interest accrued prior to Project completion shall be paid annually unless
<br /> otherwise approved by CWCB.
<br /> CWCB will disburse loan funds at a rate of no greater than 90%of Project Cost, up to the approved
<br /> loan limit. The breakdown of the contract components are listed in Table 4.
<br /> TABLE 4: CONTRACTING SUMMARY
<br /> Time of Estimated
<br /> Contract performance Project Cost Contract Amount Project Activity
<br /> (Not Incl.Service Fee) _
<br /> 1 1 Year $5,477,000 $4,929,000 Cost of storage
<br /> Engineering,recreation facilities construction,
<br /> 2 5 Years $31,382,000 $28,245,000 on-site mitigation,off-site mitigation,
<br /> mitigation monitoring
<br /> 3 13 Years $12,029,000 $10,826,000 Off-site mitigation,mitigation monitoring
<br /> Creditworthiness: The District has $62 million in existing debt consisting of four Revenue Bonds,
<br /> payable solely from net operating revenues. These bonds are shown in Table 5 and have as
<br /> collateral the Districts operating revenues.
<br /> TABLE 5: EXISTING DEBT
<br /> Debt Original Current Annual Maturity Collateral
<br /> Balance Balance Payment Date
<br /> 2005 Bond $16,360,000 $4,230,000 $2,245,000 2015 Operating Revenues
<br /> 2008 Bond $18,775,000 $9,165,000 $2,516,000 2017 Operating Revenues
<br /> 2012A Bond $30,490,000 $29,955,000 $1,169,000 2024 Operating Revenues
<br /> 2012B Bond $18,750,000 $18,540,000 $772,000 2023 Operating Revenues
<br /> Total $61,890,000 $6,702,000
<br /> The 2005 Bond is scheduled to be retired prior to the first loan repayment for this Project is due.
<br /> Therefore, the "Future w/Project" financial ratios shown in Table 6 do not include the 2005 Bond
<br /> debt.
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