CT2015-161 Parity Certificate

• Contract/PO #: CT2015-161
• Contract/PO #: CMS74816
• Contractor Name: Bennett, Town of
• Contract Type: Loan
• Water District: 1
• County: Adams
• County: Arapahoe
• Loan Projects - Doc Type: Contract Documents

Town of Bennett
Parity Test required by Section 8 (e) (ii) of the Loan Contract made on March 21, 2008, by and between the Colorado
Water Conservation Board ("CWCB") and the Town of Bennett acting by and through its Water Activity Enterprise
("Town")
Water Activity Enterprise
January 1, 2014 to December 31, 2014 Note 1
(Unaudited)
Charges for services $ 617,108
Other revenues 10,481
Net investment income 97
Tap fees (part of) 69,700 Note 2
Total revenues 697,386
Annual operations and maintenance expenses 459,614 Note 3
Annual debt service on existing debts 35,510 Note 4
Transfers-out to General Fund 120,000 Note 5
Annual deposit to Debt Service Reserve Fund (required by existing CWCB Loan) 1,373 Note 6
Estimated annual debt service on debt proposed to be issued 76,620 Note 7
Total reduction from revenues 693,117
Balance $ 4,269
Note 1
Revenues, operations and maintenance expenses, and transfers-out to the General Fund were taken from the
Town's unaudited financial statements for the year ended December 31, 2014. Annual debt service on existing
debts was based on the amortization schedules reflected in the Town's audited financial statements for the
year ended December 31, 2013. Required annual deposit to the debt service reserve fund for the existing
CWCB loan was taken from the Loan Contract. See Note 7 regarding debt service on the new debt.
Note 2
Tap fees during 2014 totaled $116,000. For purposes of this analysis, pursuant to Section 8 (e) (ii) of
the Loan Contract, no more than 10% of total revenues may originate from tap and/or connection fees.
Therefore, only$69,700 was included in the calculation above.
Note 3
Operations and maintenance costs include personnel costs, professional services and other administrative
and operating expenses.
Note 4
This amount represents total debt service in 2015 on existing debts as follows:
- 1995 Note to Colorado Department of Local Affairs - Energy Impact Assistance Program
(Debt service will end in 2015. Anticipated debt service in 2015 is$17,769.)
-2004 Note to Colorado Department of Local Affairs - Energy Impact Assistance Program
(Debt service will end in 2024. Annual payment is fixed at$4,012.)
-2008 Note to Colorado Water Conservation Board
(Debt service will end in 2038. Except for last few years, annual payment is fixed at$13,729)
Note 5
The amount being transferred to the General Fund on an annual basis can vary.
Note 6
The existing CWCB Loan requires an annual deposit to a debt service reserve fund equal to one-tenth of an
annual payment, due on the first annual loan payment and 10 years thereafter.
Note 7
This fixed annual payment was calculated based on a projected loan amount of$1,454,400, with an
estimated interest rate of 3.25%, with a projected loan date of April 1, 2015, and projected to mature
on April 1, 2045 (30 years).
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