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. Table 3. Loveland Water Fund Financial Indicators for 1995-1997 Year Operating UJiJ.g-Term Debt perTap,; , Debt Service Ratio( 1 } iDebt.... .. Cov~r{lge(2) 1995 1.65 $11,638,784 $743 1.03 1996 1.88 $10,633,000 $637 1.40 1997 1.86 $9,535,123 $566 1.42 (I) Operating revenues/operating expenses (2) (Total eligible revenues-operating expenses)/debt service The City is seeking the difference between the estimated project cost of $20.0 million and the $13.0 million to be obtained through rate increases, or roughly $7.0 million, in funding from various sources including the CWCB and the Colorado Water Resources and Power Development Authority. The City also has the capability to market its own bonds but is hoping to obtain most of the financing from the CWCB and the Authority. The City, acting by and through its water activity enterprise, is applying to the Board for an additional ten-year loan of $3.0 million. If the additional $3.0 million loan is authorized, total CWCB funding for this project would amount to $5.0 million, or about 25-percent of total project costs. . Based on median household income, the City would qualify for the Standard Municipal lending rate as may be established by the Board for 1999. The ten-year loan term would reduce the 30- year lending rate by one-half of one percent. Discussion The City staff has worked closely with the CWCB staff since 1986 in the planning effort for the Green Ridge Glade project. Having reviewed all of the associated planning studies, staff finds the proposed project to be economically, financially, and technically feasible. The reservoir expansion will provide reliable emergency storage, allow the City to better manage its water rights, and provide a high degree of drought protection. The financial impact of the project on water users is expected to be negligible since a substantial reserve fund will be available to offset a major portion of project costs. No additional increase in water rates is contemplated at the present time. The City has an accepted water conservation plan on file with the CWCB Office of Water Conservation. . 3