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Orchard Mesa Irrigation District Agenda Item 14b <br /> November 16-17, 2016 Board Meeting (Updated November 17, 2016) <br /> Page 5 of 5 <br /> TABLE 3: FINANCIAL SUMMARY <br /> Total Project Cost $5,200,000 <br /> Alternate Funding Sources $1,500,000 <br /> Association's Contribution (Pending $1.7M CWCB Loan) $1,850,000 <br /> District Cash Contribution $150,000 <br /> District CWCB Loan Amount $1,700,000 <br /> CWCB Loan Amount (Including 1% Service Fee) $1,717,000 <br /> CWCB Annual Loan Payment $76,664 <br /> CWCB Annual Loan Obligation (1st Ten Years) $84,330 <br /> Annual Loan Obligation per annual kilowatt hours (17 M kWh/year) $0.005 <br /> Project Cost per Megawatt (4.1 MW Facility) $1,268,293 <br /> Creditworthiness: The District has no existing long-term debt. CWCB loans were obtained in 1995 and <br /> 2006 for $1,000,000 and $545,000, respectively, but these were both paid in full ahead of schedule in <br /> 2012. The financial analysis in Table 4 looks at total revenues and expenses of the GVPP itself, and <br /> does not take into account non-GVPP business aspects of the District or Association. This analysis shows <br /> the GVPP is self sustaining during average years. <br /> TABLE 4: GVPP FINANCIAL RATIOS <br /> Financial Ratio Past 3 Years Future <br /> w/ Project <br /> Operating Ratio (revenues/expenses) 199% 100% <br /> weak: <100% - average: 100% - 120% - strong: >120%1 (strong) (average) <br /> $545K/$274K $505K/$503K <br /> Debt Service Coverage Ratio 101% <br /> (revenues-expenses)/debt serviceNA (strong) <br /> weak: <100%II - average: 100% - 120% - strong: >120%11 ($505K $334K) <br /> $169K <br /> Cash Reserves to Current Expenses 111% 11% <br /> weak: <50%I - average: 50% - 100%I - strong: >1001 (Strong) (weak)' <br /> $304K /$274K $54K /$503K <br /> 'Does not assume accumulations of the$50,000 per year reserve account for Repair/Replace <br /> Collateral: Security for this loan will be a pledge of the District's assessment revenues backed by an <br /> assessment covenant, and will provide annual financial reporting. This is in compliance with the CWCB <br /> Financial Policy #5 (Collateral). <br /> cc: Max Schmidt, Manager, Orchard Mesa Irrigation District <br /> Jennifer Mete /Derek Turner, Colorado Attorney General's Office <br /> Attachment: Water Project Loan Program - Project Data Sheet <br />