BOARD00114

• Board Meeting Date: 5/21/2001
• Description: CF Section - Lower South Platte Water Conservancy District ‎(Water Activity Enterprise)‎ - Augmentation and Groundwater Recharge Project
• Board Meetings - Doc Type: Memo

Lower South Platte Water Conservancy District Agenda lIem 7b.
May 21-22, 2001

Table 3. FinancIal Ratios

FinancIal RatIo

WIthout
the fa ect
110%
(average)

With
the fa 'eet
109%
(average)

Operating Ratio (revenue/expense)
weak: less than 100%
average: 100% - 120%
siron : reater than 120%
Debit Service Coverage Ratio
(revenues-expenses)/debt service
weak: less than 100%
average: 100% - 125%
siron : realer Ihan 125%
Cash Reserves to Current Expense
weak: less than 50%
average: 50% - 100%
stron : reater than 100%
Annual Cost per acre-foot Diverted
weak: grealer than $20
average: $10 - $20
siron : less than 10

No Debt
(strong)

160%
(strong)

82%
(average)

68%
(average)

. $ 9.89
: (strong)

$12.17
(average)

,
As security for the loan the LSPWCD will pledge as~essments of the Enterprise Fund backed by
assessment covenant as well as revenues from the' GASP contract to purchase augmentation
water from the new well. This security is In compliance with cwes Loan Policy #5 (Collateral).

Recommendation
Staff recommends that the CWCS find that the Lower South Platte Water Conservancy District -
Water Activity Enterprise Is eligible for a loan from the Small Project Loan Account. If the project
is not completed in spring 2001, it may be necessarY for the State Engineer to curtail junior
wells In summer 2001. Delaying the project until summer 2002 would pose an undue hardship
on the constituents served by the borrower due to the potential for loss of crops.

Staff recommends a Small Project Loan not to E!xceed $100,000 to the Lower South Platte
Water Conservancy District and/or to the Lower South Platle Recharge Project Water Activity
Enterprise for the LSPWCD augmentation llnd groundwater recharge project. The
recommended term of the loan is 10 years and the recommended lending rate Is 3%. Security
for the loan will be a pledge of assessment revenues backed by assessment covenant and
revenues from the GASP Contract to lease augmentation water from the new well. The loan
would be subject to ,all other standard contracting provisions of the CWCS.

ce: Robert Schott, Manager, Lower South Platte WCD, via emall.
Jon Altenhofen, PE, Northern Colorado WCD, via emall.
Linda Bassi, AGO '

Attachment

C:IWP51IProj-NewILSPWCD 501 memo L:lboardmemlll1jly01\7b-May 01 LSPWCD

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