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<br />Central Colorado WCD <br />November 25-26, 2002 <br /> <br />Agenda Item 20e. <br /> <br />e <br /> <br />become available in July 2003, and would be used to refinance this debt, acquire added <br />senior water rights, and construct new facilities in 2003, 2004, and 2005. <br /> <br />Financial Analvsis <br />The total estimated cost of the project is $22 million. Staff recommends a loan in <br />amount of $20 million (90 percent of the total cost) for 2002-2003. The GMS-CCWCD <br />will repay the loan uSing. current revenues, and revenues derived from a properly tax <br />increase. The GMS-CCWCD will fund its 10% cost share from existing reserves. Table 4 <br />is a summary of the financial aspects of the project. <br /> <br />Table 4. Groundwater Management Subdistrict of the <br />Central Colorado Water Conservancy District <br /> <br />Financial Summary <br />Proiect Cost $22 million <br />CWCS Loan Amount $20 million <br />CWCS Loan Payment !includes 10% reserve.) $1.086,457 <br />Current Tax Revenues $708,119 <br />Tax Revenues reauired with CWCS loan $1,394.576 <br />Current Auamentation Assessments $123,550 <br />Auamentation Assessments with loan $123,550 <br />A..........u...' I o....n ,...........~ DE". .........a foo+ (<1" 'J"n .........s +'............. vie'."n lto1nc:: <br />1111 Ctl.... Q VV~1. 01 Q....I - "IV,"-'VV .........1 -1\:0'\;01. I I.... .....IVV <br /> <br />e <br /> <br />Water is used almost exclusively for augmentation of junior agricultural wells, (Only 6 of <br />the Subdistrict's 966 member wells supply water for municipal purposes.) The CWCS <br />Agricultural loan rate of 2.75% for 30 years would apply to this loan. <br /> <br />Credit worthiness: The GMS-CCWCD has no debt. Table 5 shows the Financial Ratios <br />and indicates, with the exception of the Cost per acre-foot. average to strong ability to <br />repay with the project in place. <br /> <br />e <br /> <br />Financial Ratio Without the oroiect With the oraiect <br />Operating Ratio (revenue/expense) 193% 136% <br />weak: less than 100% (strong) (strong) <br />average: 100% . 120% <br />strann: oreater than 120% <br />Debit Service Coverage Ratio No debt 150% <br />(revenues-expenses)/debt service (strong) (strong) <br />weak: less than 100% <br />average: 100% -125% <br />strano: oreater than 125% <br />Cash Reserves to Current Expense 139% 43% <br />weak: less than 50% (strong) (weak) <br />average: 50% - 100% <br />strano: areater than 100% <br />Annual Cost per Acre-Foot (22.260 AF Average $36 $85 <br />annual depletions covered) (weak) (weak) <br />weak: greater than $20 <br />average: $10. $20 <br />strano: less than $10 <br /> <br />Table 5. Financial Ratios <br /> <br />5 <br />