BOARD00238

• Board Meeting Date: 1/24/2001
• Description: CF Section - Severance Tax Trust Fund Perpetual Base Account New Loans - Town of Monument - Monument Dam Rehabilitation
• Board Meetings - Doc Type: Memo

indicators fall in the strong category with the exception of debt per tap, which is in the
average category.

Table 3. Town of Monument Water Enterprise Fund
Financial Indicators for Future Years

Indicator Weak Average
Operating Ratio (1) <100 % 100-120 %
Debt Service Coverage Ratio (2) <100% 100-125%
Cash Reserves to Current Expense <50% 50-100%
Debt per Tap >$5,000 $2,500-$5,000
(I) Operating revenue/( operating expense-depreciation)
(2) (Revenue-operating expense-depreciation)/debt service

Strong
>120%
>125%
>100%
<$2,500

Ratio
166%
184%
275 %
$3,625

Of the $3,081,000 project cost, El Paso County will provide at least $1.0 million under
the terms of the IGA between the Town and the County, as described above. The Town is
requesting a loan of$2,081,000 from the Severance Tax Trust Fund Perpetual Base
Account for its share of the project costs.

Impacts and Permittinl!

Corps of Engineers 404 Permits and Section 7 Consultation with the US Fish and
Wildlife Service will be required. The Corps approved a nationwide permit in November
2000 for Phase I work on the spillway.

Discussion

Based on information provided by the Town and on the feasibility study submitted by
Boyle Engineering, staff believes that the project is financially and technically feasible.
Monument Lake is an important recreational resource for the Monument Lake area and
northern EI Paso County. The willingness of both the Town and the County to participate
in the costs of the rehabilitation work demonstrates strong local support for the project.

The Town has attempted to obtain Great Outdoors Colorado funding for the project
without success. Funding is not presently available from the Colorado Water Resources
and Power Development Authority (see the attached letter from Mike Brod of the
Authority). A CWCB loan is the only practical method for the Town to finance its portion
of the project costs.

Based on a median household income of $30,294, the Town would qualify for the
Board's 2001 Municipal Middle-Income lending rate of 5.50 percent for a 30-year loan.

Recommendation

Staffrecommends a loan of up to $2,081,000 from the Severance Tax Trust Fund
Perpetual Base Account to the Town of Monument, acting by and through its water

4