CT2017-916 Approval Letter

• Contract/PO #: CT2017-916
• Contractor Name: Grand Junction, City of
• Contract Type: Grant/Loan Combo
• Loan Projects - Doc Type: Approval Letter

City of Grand Junction Agenda item 13a
March 16-17, 2016 Board Meeting (Updated March 18,2016)
Page 8 of 8
TABLE 6: FINANCIAL RATIOS
Financial Ratio Past 3 Years Future
w/Project
Operating Ratio (revenues/expenses) 115% 112%
weak: <100%I- average: 100% - 120%I- I strong: >17141 (Average) (Average)
$5.5M/$4.8M $5.5M/$4.9M
Debt Service Coverage Ratio 230% 202%
(revenues-expenses)/debt service (Strong) (Strong)
weak: <100% - average: 100% - 120%I- strong: >120%' $5.5M $4.3M! $5.5M $4.3M/
$522K $595K
Cash Reserves to Current Expenses 42% 41%
weak: <50%I- average: 50% - 100%I- strong: >100%4 (Weak) (Weak)
$2.0M/$4.8M $2.OM/$4.9M
Average Monthly Water Bill $16.50 $16.50
Leak: >$60 I- average: $30 - $60 I- strong: <$30 (Strong) (Strong)
Debt per Tap (9,500 taps) $463 $568
weak: >$5,0001- average: $2,500-$5,000 - strong: <$2,5001 (Strong) (Strong)
$4.4M/9,500 $5.4M/9,500
Collateral: Security for this loan will be a pledge of the City's water enterprise revenues backed by a
rate covenant and evidenced by annual financial reporting. This is in compliance with the CWCB
Financial Policy#5 (Collateral).
cc: Rick Brinkman / Bret Guillory, City of Grand Junction
Susan Schneider/Jennifer Mete, Colorado Attorney General's Office
Attachment: Water Project Loan Program - Project Data Sheet
WSRA Grant Application