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Centennial Water and Sanitation District
<br /> Douglas County,Colorado
<br /> Debt Service Parity Certification
<br /> 2018 Colorado Water Conservation Board Loans
<br /> Exhibit A
<br /> (Audited)
<br /> 2017
<br /> Revenues
<br /> Operating Revenues $ 35,994,727
<br /> Other Utility Revenue(1) 924,377
<br /> Total Recurring Revenue 36,919,104
<br /> Operation and Maintenance Expenses(2) 24,285,228
<br /> Operating Revenues less Operation and Maintenance Expenses 12,633,876
<br /> Annual Current Debt Service Requirements
<br /> 2008 Bond Series 2,516,800
<br /> 2012 Bond Series A 2,503,778
<br /> 2012 Bond Series B 1,659,282
<br /> Total Current Annual Debt Service 6,679,860
<br /> Debt Coverage Ratio i 189.13%
<br /> Future Annual Debt Service Requirements
<br /> 2012 Bond Series A 4,098,232
<br /> 2012 Bond Series B 2,713,116
<br /> 2015 Colorado Conservation Water Board Contract 150405A 251,474
<br /> 2015 Colorado Conservation Water Board Contract 150405B (as amended) 1,898,003
<br /> 2015 Colorado Conservation Water Board Contract 150405C 552,335
<br /> Total Future Annual Debt Service 9,513,160
<br /> Debt Coverage Ratio ii 133%
<br /> Capital Contributions
<br /> Capacity Fees 4,100,000
<br /> Capacity Fees as%of Revenue 10.00% (4)
<br /> Financial Assurance Fund(equivalent of Rate Stabilization Fund)(3) 8,994,664
<br /> Total Revenue,Capital Contributions,and Financial Assurance Fund 25,728,540
<br /> Debt Coverage Ratio IH 270%(4)
<br /> Reserve Funding Requirements
<br /> 2015 Colorado Conservation Water Board Loans 270,181
<br /> Total Future Annual Debt Service and Reserve Funding 9,783,341
<br /> Total Revenue and Capital Contributions 16,733,876
<br /> Debt Coverage Ratio iv 171%
<br /> Pertinent Debt Compliance Provisions
<br /> 2012 Bond Series
<br /> Debt coverage ratio of 100%based on the ratio of net recurring revenue vs.current year debt service(see(i)and(ii))
<br /> Minimum secondary coverage ratio of 125%based on ratio of net recurring revenue plus capital contributions plus the financial assurance fund
<br /> (see(iii))
<br /> 2015 Colorado Water Conservation Board Loans 150405A,150405B,150405C
<br /> 100%based on net recurring revenue including capital contributions,including required reserves(see(iv))
<br /> (1)-Includes net investment income,but excludes other non-operating income and capital contributions
<br /> (2)-Excludes depreciation and expenses for non-capitalized major repairs made from a reserve fund established for major repair
<br /> (3)-This balance is transferred annually at the end of the fiscal year. Transfer has not fluctuated materially over the past 4 years
<br /> (4)-Actual capacity fees were more than 10%of total revenues($5,144,263-12.23%of total revenues). Therefore,for purposes of the
<br /> calculation, capacity fees were reduced to 10%of total revenue. If capacity fees were disregarded in total,coverage ratios would still be met.
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