BOARD00203

• Board Meeting Date: 11/19/2001
• Description: CF Section - Construction Fund New Loans - East Dillon Water District - Purchase of Water Rights
• Board Meetings - Doc Type: Memo

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Table 3.

EDWD Financial Analysis

Ratio

Weak Average Strong
<100% 100-120 % >120%
<100% 100-125% >125%
>$5,000 $2,500-$5,000 <$2,500
<50% 50-100% >100%
>$60 $30

1998-2000
Av,
105%
251%
$300
143%
$36

Fnture Year

Operating Ratio
ebt Service Coverage Ratio
ebt per Tap
Cash Reserves to Current Expense
outhly Water Bill and Taxes

190%
103%
$2,200
61%
$37

As a part of the feasibility study, the District prepared a 30-year financial projection for
the entire period of debt retirement. The projection indicates that some revenue deficits
may occur over the next five years (due mainly to capital improvement projects) but will
be covered by cash reserves and then eliminated in following years,

Amendment One

The District currently utilizes water service charges and property taxes. Most revenues
result from service charges but property taxes represent more than ten percent of the total.
The District will decide in the next few months whether to continue with the current
. revenue structure or to rely exclusively upon service charges for revenue,

In May of 2002, the District will hold an election to request voter approval for: (1) a mill
levy for debt service retirement, (2) authorization to incur debt for the CWCB loan and
other borrowing as may be necessary for the proposed acquisition, and (3) to "De Bruce"
tap fee revenues,

Recommendation

Staff recommends a loan from the Construction Fund of up to $2,550,000 to the East
Dillon Water District for the purchase of water rights and other assets listed in: (1) the
Purchase Agreement of Dee ember 2000 between the Vidler Water Company and the
EDWD, and, (2) the Assignment Agreement of December 2000 between the City of
Golden, the Vidler Water Company and the EDWD (excluding an interest in the
augmentation plan in Case No, 97CW305). Three hundred thousand dollars ($300,000) of
the loan amount shall be for refinancing funds already expended by the EDWD under the
December 2000 Assignment Agreement.

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The loan will be for a period 000 years at the Municipal Middle Income lending rate as
maybe adopted by the Board in November 2001, As collateral for the loan, the EDWD
will pledge District revenues backed by a rate covenant and the water rights and wells to
be acquired by the loan proceeds.

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