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Town of Firestone Agenda Item 14a <br /> November 16-17, 2016 Board Meeting (Updated November 17, 2016) <br /> Page 5 of 5 <br /> TABLE 2: FINANCIAL SUMMARY <br /> Total Project Cost $10,043,150 <br /> Borrowers Contribution $142,160 <br /> CWCB Loan Amount $9,900,990 <br /> CWCB Loan Amount (Including 1% Service Fee) $10,000,000 <br /> CWCB Annual Loan Payment $632,417 <br /> CWCB Annual Loan Obligation (15Y Ten Years) $695,659 <br /> Monthly Cost of Loan per Tap (including 10% debt reserve funding) $12.48(1) <br /> (1) The Town currently has 3,895 physical taps of varying sizes, which have been converted to <br /> Single Family Equivalents (SFEs) of a standard 5/8-inch residential tap. The converted tap count <br /> is 4,646 SFEs using rounded pipe area equivalents. <br /> Creditworthiness: The Town carries no debt tied to its water activity enterprise. Per the Town's 2014 <br /> Water Rate Study, the Town has scheduled varying rate increases between 6% and 8% through 2023, <br /> which will cover additional capital improvements and debt service resulting from this Project. <br /> TABLE 3: FINANCIAL RATIOS <br /> Financial Ratio Past 3 Years Future <br /> w/ Project <br /> Operating Ratio (revenues/expenses) 126% 121% <br /> weak: <100%I - average: 100% - 120%I- strong: >120%1 (strong) (strong) <br /> $3.11M / $2.47M $3.84M / $3.17M <br /> 197% <br /> Debt Service Coverage Ratio <br /> (revenues-expenses)/debt service NA (strong) <br /> weak: <100% - average: 100% - 120%1- strong: >1201 ($3.84M $2.47M) <br /> / $695.7K <br /> Cash Reserves to Current Expenses 238% 202% <br /> weak: <50% - average: 50% - 100% - strong: >100%1 (strong) (strong) <br /> $5.88M / $2.47M $6.41M / $3.17M <br /> Debt per Tap (Based on 4,646 Tap SFEs) $2,152 <br /> weak: >$5,000 - average: $2,500 - $5,000 - strong: <$2,5001 NA (average) <br /> Average Monthly Water Bill $54.50 $71 <br /> weak: >$60 - average: $30 - $60 - strong: >$30 (average) (weak) <br /> Collateral: Security for this loan will be a pledge of water activity enterprise revenues backed by a <br /> rate covenant and annual financial reporting. This security is in compliance with CWCB Financial Policy <br /> #5 (Collateral). <br /> cc: Julie Pasillas, Resources and Sustainability Coordinator, Town of Firestone <br /> Jennifer Mete, Colorado Office of the Attorney General <br /> Attachment: Water Project Loan Program - Project Data Sheet <br />