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<br />~ <br /> <br />Little Thompson Water District - Proposed Dry Creek Reservoir <br />November 25-26, 2002 <br /> <br />Agenda ~em 201 <br /> <br />Permitting - Preliminary environmental assessments have been completed. There are several . <br />wildlife and plant issues to be addressed, but none that will prevent construction permitting. Initial <br />archaeological assessment has been conducted and has identified several sites of significance <br />within one mile of the site, Additional on-site assessment will be required before construction to <br />determine appropriate mitigation. The reservoir development will require a Corps of Engineers 404 <br />Permit. In order to comply with Department of Wildlife requirements covered by the 404 permit, a <br />depletion analysis will. be necessary to determine eftects of thE1 reservoir on the South Platte River. <br />No significant depletion is expected. The project will be subject to review for special use by Larimer <br />County. . Based on conversations between L 1WD ~nd Larimer County, no issues have been <br />identified that would prevent development of the res\;lrvoir. Property issues are currently being <br />addressed. A total of 23 properties are expected tQ be affected, only four of which are expected to <br />have to be purchased in their entirety. <br /> <br />Financial Analvsis <br /> <br />The total estimated cost of the project is $10,500,OQO in a 50/50 partnership with the CWCWD, with <br />each entity borrowing $3,937,500 from the CWCB. : The total loan will be for 75% of the estimated <br />project cost. The District qualifies for a blended M~nicipal Middle/High Income Interest Rate. Staff <br />is recommending a 20-year maximum amount of $3',937,500 at an interest rate of 4.05% per year. . <br />The District has budgeted $1,312,500, the 25 percent local match, needed for their portion of the <br />project, and the money is in place in reserves for that purpose. <br /> <br />Alternative financing sources: The District did consider bonding for this project but opted to <br />pursue funding through CWCB because of more fa~orable lending rates. <br /> <br />Table 1 is a summary of the financial aspects of the: project. A CWCB Construction Loan of . <br />$3,937,500 would have an annual payment of $320; 114 (including the 10% reserve requirement) at <br />the loan terms of 4.05% per year for 20 years. <br /> <br />Table 1. Financial Summary <br /> <br />Proiect Cost (50% for L 1WD\ . $5,250,000 <br />Number of Residents , 24,500 <br />Number of Water Taos , 7642 <br />CWCB Loan Amount (20 vears) , $3,937,500 <br />, <br />CWCB Loan Pavment (Includes 10% reserve) . $320,114 <br />Current Monthlv Water Rate (Averaae) $27.00 <br />Monthly per taD cost of the CWCB loan .. $3.49 <br />Annual Loan Cost oer Acre-Foot (2600 acre-feet- 50% of storaae) $123.12 <br /> <br />Creditworthiness: The District currently has thre~ revenue bond issues (1995, 1999, 2000) and <br />two loans with CWR & PDA'(1992, 1998). with a tot~1 remaining amount of $17,208,455, as of <br />December 31,2001. Bonds will be retired in 2014, 2019, and 2020 respectively, and loans in 2008. <br />Annual payments on all bonds and loans total approximately $1.5 million. The District is in <br />compliance with the rate maintenance requirements of the bond and loans pertaining to revenues <br />and expenses. CWCB would require parity of pledged water revenues with these bonds and <br />~~L . <br /> <br />Table 2 shows the Financial Ratios for the District, without considering tap fee revenues, except as . <br />shown. The ratios indicate average to strong abili~ to repay the $3,937,500 CWCB loan, with <br />future water rate increases. The L 1WD raised thek water rates 10% in 2002, and adopted an <br /> <br />Page 40f 6 <br />