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Castle Pines Metropolitan District Agenda Item 29b
<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 (3.82%of Reallocation Cost) $5,560,000
<br /> Borrower Match $560,000
<br /> Project Loan $5,000,000
<br /> Project Loan(Including 1% Service Fee) $5,050,000
<br /> Project Annual Loan Payment $257,647
<br /> Project Annual Loan Obligation(incl. 10%debt reserve) $283,412
<br /> Monthly Cost of Loan per Tap (incl. 10%debt reserve) $13.89
<br /> Project Cost per Acre-Foot of Storage (786.7 AF) $7,063/AF
<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 Project Estimated
<br /> Contract Performance Cost Contract Amount Project Activity
<br /> (Not Incl.Service Fee)
<br /> 1 1 Year $623,000 $560,000 Cost of storage
<br /> Engineering,recreation facilities construction,
<br /> 2 5 Years $3,569,000 $3,210,000 on-site mitigation,off-site mitigation,
<br /> mitigation monitoring
<br /> 3 13 Years $1,368,000 $1,230,000 Off-site mitigation,mitigation monitoring
<br /> Creditworthiness: The District has $5,252,321 in existing debt. The water activity enterprise
<br /> portion of that debt is $2,061,321 and consists of a 2003 Revenue Bond and two Drinking Water
<br /> Revolving Fund loans (DWRF)through the Colorado Water Resources and Power Development
<br /> Authority (CWRPDA).
<br /> TABLE 5: EXISTING DEBT
<br /> Lender Original Current Annual Maturity Collateral
<br /> Balance Balance Payment Date
<br /> 2003 Bond $2,005,000 $390,000 $206,865 2015 Enterprise revenue
<br /> DWRF $2,000,000 $1,482,183 $145,099 2026 Enterprise revenue
<br /> (May 2006)
<br /> DWRF
<br /> 2 $250,000 $189,138 $17,983 2027 Enterprise revenue
<br /> (Nov
<br /> (Nov 2006)
<br /> 2008 Bond $9,545,000 $3,191,000 $1593,250 2015 Tax revenue
<br /> Total $5,252,321 $369,947
<br /> The 2003 Bond is scheduled to be retired prior to the first loan repayment for this Project is due.
<br /> The District is applying for a new$1.8 million loan with the CWRPDA to fund a water transfer line
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