CT2017-2875 Approval Letter

• Contract/PO #: CT2017-2875
• Contractor Name: Grand Valley Water Users Association
• Contract Type: Loan
• Loan Projects - Doc Type: Approval Letter

Grand Valley Water Users Association Agenda Item 14c
November 16-17, 2016 Board Meeting (Updated November 17, 2016)
Page 5 of 5
WaterSmart grant from Reclamation, and using LOPP Accumulated lease payments as a credit towards
the Project. As of now, at least $1,500,000 in alternate funds are committed and the Association and
District are each committed for $150,000 each out of its restricted repair and replace fund.
TABLE 3: FINANCIAL SUMMARY
Total Project Cost $5,200,000
Alternate Funding Sources $1,500,000
District's Contribution (Pending $1.7M CWCB Loan) $1,850,000
Association Cash Contribution $150,000
Association CWCB Loan Amount $1,700,000
CWCB Loan Amount (Including 1% Service Fee) $1,717,000
CWCB Annual Loan Payment $76,664
CWCB Annual Loan Obligation (1st Ten Years) $84,330
Annual Loan Obligation per annual kilowatt hours (17 M kWh/year) $0.005
Project Cost per Megawatt (4.1 MW Facility) $1,268,293
Creditworthiness: The Association has no existing long-term debt but was recently approved for a
$151,500 loan for the Government Highline Canal Lining Project at the September 2016 CWCB Board
Meeting. This will result in an annual payment of $6,353 if the loan is fully disbursed but will be paid
from assessments and not GVPP revenue. The financial analysis in Table 4 looks at total revenues and
expenses of the GVPP itself, and does not take into account non-GVPP business aspects of the
Association or District. This analysis shows the GVPP is self sustaining during average years.
TABLE 4: GVPP FINANCIAL RATIOS
Financial Ratio Past 3 Years Future
w/ Project
Operating Ratio (revenues/expenses) 199% 100%
weak: <100%I - average: 100% - 120% - strong: >120%1 (strong) (average)
$545K/$274K $505K/$503K
Debt Service Coverage Ratio 101%
(revenues-expenses)/debt serviceNA (strong)
weak: <100% - average: 100% - 120% - strong: >1201 ($505K $334K)
$169K
Cash Reserves to Current Expenses 111% 11%
weak: <50% - average: 50% - 100% - strong: >1001 (Strong) (weak)'
$304K /$274K $54K /$503K
'Does not assume accumulations of the$50,000 per year reserve account for Repair/Replace
Collateral: Security for this loan will be a pledge of the Associations' assessment revenues backed by
an assessment covenant, and will provide annual financial reporting. This is in compliance with the
CWCB Financial Policy#5 (Collateral).
cc: Mark Harris, General Manager, Grand Valley Water Users Association
Jennifer Mete, Colorado Attorney General's Office
Attachment:Water Project Loan Program- Project Data Sheet