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City of Cortez Agenda Item 18a <br /> January 26-27,2015 Board Meeting(Updated January 28,2015) <br /> Page 6 of 6 <br /> TABLE 5: FINANCIAL RATIOS <br /> Financial Ratio Past 3 Years Future <br /> w/Project <br /> Operating Ratio(revenues/expenses) 125% 124% <br /> weak: <100% - average: 100% - 120%r- strong: >120'. (Strong) (Strong) <br /> $2.0M/$1.6M $2.1M/$1.7M <br /> Debt Service Coverage Ratio 189% 189% <br /> (revenues-expenses)/debt service (Strong) (Strong) <br /> weak: <100% - average: 100% - 120% - stron': >120'. ($2.0M-$1.3M) ($2.1M-$1.2M) <br /> $370K $475K <br /> Cash Reserves to Current Expenses 43% 23%(1) <br /> weak: <50% - average: 50% - 100% - strong: >100% (Weak) (Weak) <br /> $694K/$1.6M $394K/$1.7M <br /> Debt per Tap (3,400 taps) $1,265 $1,529 <br /> weak: >$5,000 - average: $2,500-$5,000 - stron.: <$2,500 (Strong) (Strong) <br /> $4.3M/3,400 $5.2M/3,400 <br /> Average Monthly Water Bill $43 $45 <br /> weak: >$60 - average: $30-$601- stron.: <$30 (Average) (Average) <br /> (1) Cash Reserves ratio was calculated assuming$0 from DOLA and$300,000 in borrower matching funds. <br /> Collateral: Security for this loan will be a pledge of the City'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 /> cc: Phil Johnson, City of Cortez <br /> Shane Hale, City of Cortez <br /> Susan Schneider/Jennifer Mete, Colorado Attorney General's Office <br /> Ken Charles, Regional Manager, Department of Local Affairs <br /> Attachment: Water Project Loan Program - Project Data Sheet <br />