BOARD00079

• Board Meeting Date: 11/25/2002
• Description: CF Section - Poudre Tech Metropolitan District - Dual Water System
• Board Meetings - Doc Type: Memo

Poudre Tech Metropolitan District
November 25-26, 2002

Agenda Item 201.

or interest due until 2006, at which time the entire amount becomes due and payable.
The due date for this loan may be extended upon mutual agreement of the parties.

Table 3 shows the Financial Ratios for PTMD, excludina the debt owed to Trollco. Inc.
(The CWCB debt would be in a senior positH:m.) With the exception of Cash Reserves,
all ratios are in the average and strong categories.

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Operating Ratio (revenue/expense)
weak: less than 100%
average: 100% - 120%
stron : reater than 120%
Debit Service Coverage Ratio (excluding Trollco)
(revenues-expenses )/debt service
weak: less than 100%
average: 100% -125%
stron : reater than 125%
Monthly Residential Water Bill-
weak: gretlter than $60
average: $30 - $60
siron : less than $30
.. Cash Reserves to Current Expense
weak: less than 50%
average: 50% - 100%
stron: reater than 100%
-This includes $12.50 for irrigation water, and $23.50 for potable water.

Table 2. Financial Ratlos-PTMD
Financial Ratio Without
The ro 'ect
136%
(strong)

With
The ro ect
136%
(strong)

No debt
(strong)

152%
(strong)

$36-
(average)

$36-
(average)

68%
(average)

44%
(weak)

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As security for the loan the PTMD will pledge tax revenues backed by rate covenant.
Trollco Inc. (The Developer) will pledge water rights as added collateral. Total security
pledged will be in compliance with CWCB Loan Policy #5 (Collateral).

Recommendation
Staff recommends a loan In a maximum amount of $2,180,000 to the Poudre Tech
Metropolitan District. The loan is for up to 75f/o of the costs of a project to construct a
dual water system for outside irrigation. The recommended loan terms are 30 years at
4.75% or 20 years at 4.5% at the borrower's option. As security for the loan, the CWCB
will receive collateral in accordance with CWPB Loan Policy #5. The loan will be funded
from the Construction Fund.

Staff recommends that the District be allowe~ to use this loan to refinance project costs
already completed and paid for with short term bridge financing.

Staff further recommends that final approval .of the loan be conditioned upon all other
standard contracting provisions of the CWCB.

cc: Russ Sanford, Poudre Tech Metropolitan District
Linda Bassi, AGO

Attachment

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C:\PTMD 1102 memo

L:\wctranslboardmem~nov02\201 Poudre Tech MD

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