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Mancos Water Conservancy District Agenda Item 20a. <br /> November 25-26,2002 (Updated December 2,2002) <br /> Table 5. Financial Ratios <br /> Financial Ratio Without the project With the project <br /> Operating Ratio (revenue/expense) 100% (average) 114% (average) <br /> weak:less than 100% <br /> average: 100% - 120% <br /> strong:greater than 120% <br /> Debit Service Coverage Ratio 101% (average) 101% (average) <br /> (revenues-expenses)/debt service <br /> weak: less than 100% <br /> average: 100%- 125% <br /> strong:greater than 125% <br /> Cash Reserves to Current Expense 51% (average) 22%% (weak) <br /> weak:less than 50% <br /> average:50%- 100% <br /> strong:greater than 100% <br /> Annual Cost per Acre-Foot $10.68 (average) $30.39 (weak) <br /> (Average annual diversions 9,194 <br /> weak:greater than$20 <br /> average:$10-$20 <br /> strong: less than$10 <br /> As security for the loan the MWCD will pledge assessments backed by rate covenant. <br /> (This security is in compliance with CWCB Loan Policy#5 (Collateral). <br /> Recommendation <br /> Staff recommends a loan in a maximum amount of$5,486,531 to the Mancos Water <br /> Conservancy District, acting by and through its water activity enterprise. The loan is for <br /> up to 90% of the costs of a project to rehabilitate District facilities, and to consolidate <br /> existing debt. The recommended loan terms are 30 years at 2.8%. As security for the <br /> loan, the Borrower will pledge collateral in accordance with CWCB Loan Policy#5. This <br /> loan would be funded from the Severance Tax Trust Fund — Perpetual Base Account. <br /> Staff recommends that the District be allowed to use this loan to refinance and <br /> consolidate existing debt, not including existing CWCB loans. <br /> Staff further recommends that final approval of the loan be conditioned upon all other <br /> standard contracting provisions of the CWCB. <br /> Action taken by the CWCB November 26, 2002 <br /> The CWCB approved the Staff Recommendation, with the phrase "...not including <br /> existing CWCB loans." added to the second paragraph. (See modified recommendation <br /> above.) <br /> cc: Gary Kennedy, MWCD <br /> Linda Bassi, AGO <br /> Attachment <br /> C:\MWCD 1102 memo L:\wctrans\boardmem\jnov02\20a Mancos WCD <br /> 4 <br />