CT2017-917 Approval Letter

• Contract/PO #: CT2017-917
• Contractor Name: Lamar, City of
• Contract Type: Grant/Loan Combo
• Loan Projects - Doc Type: Approval Letter

City of Lamar Agenda Item 23b
September 15-17,2015 Board Meeting(Updated September 18, 2015)
Page 8 of 8
TABLE 5: FINANCIAL RATIOS
Past 3 Years Future
Financial Ratio w/ Project
Operating Ratio (revenues/expenses) 118% 118%
I weak: <100%I- I average: 100% - 120%1- strong: >120%l (average) (average)
$2.40M / $2.03M $2.40M / $2.05M
Debt Service Coverage Ratio 163% 160%
(revenues-expenses)/debt service (strong) (strong)
($2.40M-$1.45M) ($2.40M-$1.45M)
I weak: <100%I- I average: 100% - 120%I- strong: >120%
/ $585K / $598K
Cash Reserves to Current Expenses 56% 71%
weak: <50% - I average: 50% - 100%I- I strong: >1001 (average) (average)
$1.14M / $2.03M $1.45M / $2.05M
Debt per Tap (3,500 taps) $2,800 $2,829
I weak: >$5,000 I- I average: $2,500-$5,000 - I strong: <$2,501 (average) (average)
$9.8M/3,500 $9.9M/3,500
Average Monthly Water Bill $31 $31
weak: >$60 - I average: $30-$601- strong: <$301 (average) (average)
Collateral: Security for this loan will be a pledge of the City's water enterprise revenues backed by a
rate covenant evidenced by annual financial reporting. This is in compliance with the CWCB Financial
Policy#5 (Collateral).
cc: John Sutherland, Jr., Administrator, City of Lamar
Patrick Mason, Public Works Director, City of Lamar
Susan Schneider/Jennifer Mete, Colorado Attorney General's Office
Attachment: Water Project Loan Program Project Data Sheet