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City of Cortez
<br /> Debt Service Parity Certification
<br /> 2015 Colorado Water Conservation Board Loan
<br /> Exhibit 1
<br /> 2014 12 Months
<br /> Preliminary Ended 2015
<br /> Totals 3/31/2015(1) Budget
<br /> Water Charges $ 2,188,895 $ 2,209,329 (2) $ 2,360,725 (2)
<br /> Water Development Fees 97,515 79,386 25,000
<br /> Penalties,Connection and Other Charges 35,729 36,797 40,000
<br /> investment Earnings 1,860 2,020 2,500
<br /> Total Revenues 2,323,999 2,327,532 2,428,225
<br /> Total Expenses 1,878,950 2,133,305 2,896,370
<br /> Less:Depreciation (405,520) (398,973) (379,332)
<br /> Less:Capital Outlay (148,750) (595,000)
<br /> Less:Debt Service (236,916) (270,100) (369,650)
<br /> Operating Expenses(not including depreciation) 1,236,514 1,315,482 1,552,388
<br /> Net Revenues 1,087,485 1,012,050 875,837
<br /> Annual Debt Service Requirement:
<br /> 2010 Colo Water Res&Power Development Loan 27,247 27,247 27,247
<br /> 2015 Colorado Water Conservation Board 96,075 96,075 96,075
<br /> 1986 Colorado Water Conservation Board(4) 72,506 72,506 72,506
<br /> 1986 Delores Water Conservancy District(4) 246,125 246,125 246,125
<br /> 2005 CO Dept of Local Affairs Water Loan(4) 23,772 23,772 23,772
<br /> Total Annual Debt Service Requirement 465,725 465,725 465,725
<br /> Reserve Funding Requirement:
<br /> 2015 Colorado Water Conservation Board 9,608 9,608 9,608
<br /> 2010 CWRPDA Operations and Maintenance Reserve Funding(3) 41,127 41,127 4,397
<br /> Total Annual Debt Service and Reserve Funding 516,460 516,460 479,730
<br /> Debt Coverage Ratio 211% 196% 183%
<br /> Pertinent Debt Compliance Provisions
<br /> 1986 Delores Water Conservancy District
<br /> Petition to DWCD Section 4-Charges and resources of the City sufficient to meet the obligation.
<br /> 1986 Colorado Water Conservation Board
<br /> Section 9-Adjust charges sufficient to cover O&M,emergency repairs,and obsolescence and debt reserves
<br /> Ord.694 Series 1998 Section 1-Full faith and credit pledge
<br /> 2005 DOLA Requirement
<br /> Section 22-Payment from user fees and charges
<br /> Section 23-Rate covenant sufficient to repay debt
<br /> 2010 CWRPDA Requirement
<br /> 110%of Debt service for loan and 100%of subordinate debt maturing during the period
<br /> 3 month operations and maintenance reserve
<br /> 7015 CWCB Loan
<br /> Rate covenant sufficient to pay secured debt and any required debt service reserves
<br /> (1)-12 month revenues and expenses based on proportionate allocation of 2014 actual and 2015 budgeted
<br /> amounts except water charges
<br /> (2)-Includes adjustment for rate increase adopted December 9,2014 via Resolution WE-2104-1,Series 2014
<br /> and effective 1/1/15
<br /> (3)-Only incremental change Is presented,amount is funded in year prior based on subsequent year's budget.
<br /> 2014 O&M reserve is based on the 2015 budget.The 2015 amount is based on 2016 proposed amounts presented
<br /> in the 2015 budget.
<br /> (4)-The terms of the agreements may not represent a lien of"Pledged Revenue"as defined in the 2015 CWCB
<br /> loan document as referenced in the Parity Certificate,but user fees are expected to be used to repay these obligations.
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