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Town of Bennett Agenda Item 27a <br /> November 19-20,2014 Board Meeting(Updated November 21, 2014) <br /> Page 4 of 5 <br /> TABLE 3: FINANCIAL SUMMARY <br /> Total Project Cost $1,600,000 <br /> Borrowers Contribution $160,000 <br /> CWCB Loan Amount $1,440,000 <br /> CWCB Loan Amount (Including 1% Service Fee) $1,454,400 <br /> CWCB Annual Loan Payment $76,620 <br /> CWCB Annual Loan Obligation (1st Ten Years) $84,282 <br /> Monthly cost of loan (with Reserve Account) per tap (1,093) $6.43 <br /> Creditworthiness: The Town's water enterprise has $411,549 in existing debt as summarized in Table <br /> 4. The CWCB Loan (C150262) was for the re-drilling of Well#5 in 2008. That loan is in good standing. <br /> The DOLA loans were for two wells, a storage tank, and the associated piping and metering. The 1995 <br /> DOLA loan will is scheduled to be paid in full in 2015; therefore it is not included in the future ratios in <br /> Table 5. <br /> TABLE 4: EXISTING DEBT <br /> Lender Original Current Annual Maturity Collateral <br /> Balance Balance Payment Date <br /> DOLA -1995 $217,500 $35,222 $17,453 2015 Water Enterprise <br /> Revenues <br /> DOLA- 2004 $50,000 $44,132 $4,012 2024 Water Enterprise <br /> Revenues <br /> CWCB (C150262) $252,500 $215,631 $13,728 2038 Water Enterprise <br /> Revenues <br /> TABLE 5: FINANCIAL RATIOS <br /> Financial Ratio Past 3 Years Future <br /> w/ Project <br /> Operating Ratio (revenues/expenses) 161% 142% <br /> weak: <100% - I average: 100% - 120%I- strong: >120 4 (Strong) (Strong) <br /> $780K/$485K $780K/$551K <br /> Debt Service Coverage Ratio 946% 325% <br /> (revenues-expenses)/debt service (Strong) (Strong) <br /> weak: <100% - I average: 100% - 120%I- strong: >120/ ($780K-$449K) ($780K-$449K) <br /> $35K $102K <br /> Cash Reserves to Current Expenses 180% 129% <br /> weak: <50% - average: 50% - 100% - strong: >100/ (Strong) (Strong) <br /> $873K/$485K $713K/$551K <br /> Debt per Tap (1,093 taps) $270 $1,555 <br /> I weak: >$5,0001- average: $2,500-$5,000 - strong: <$2,5001 (Strong) (Strong) <br /> $295K/1,093 $1.7M/1,093 <br /> Average Monthly Water Bill $53.45 $53.45 <br /> weak: >$60 - I average: $30- $601- strong: <$301 (Average) (Average) <br /> Collateral: Security for this loan will be a pledge of the Town's water enterprise revenues backed by a <br /> rate covenant and evidenced by annual financial reporting. This is in compliance with the CWCB <br /> Financial Policy#5 (Collateral). <br />