Laserfiche WebLink
<br /> <br />- <br /> <br />District. The average of $32,000 indicates a MunicipiU Middle Income lending rate for <br />the requested loan. <br /> <br /> <br />. <br /> <br />CWCB Lending Policy No.8 states in part that" the costs of water rights acquisition are <br />eligible for a CWCB loan if the purchase satisfies an existing water need or shortage". <br />The proposed purchase by the EDWD is to provide an adequate water supply for the <br />eventual buildout of the District. The assets to be acquired are to provide water only <br />within the District's existing service area. <br /> <br />About 75 percent of the residential properties in the District have completed homes with <br />buildout expected to occur in about 20 years or sooner. All future development has been <br />platted and almost all the necessary improvements are in place to provide service for full <br />development. <br /> <br />The proposed purchase presents the District with a ).illique opportunity to acquire assets <br />that are already decreed for District use and provid~ a reliable supply of water for the <br />future. In effect, the District is replacing the existing Vidler lease with the assets to be <br />purchased. <br /> <br />Financial Analvsis <br /> <br />Of the total purchase price of$3.40 million, the EDWD has paid $300,000 to Vidler and <br />the City of Golden for a portion of the water rights. The District proposes to finance the . <br />remainder ofthe purchase with a loan of$2.55 million from the CWCB and a commercial <br />bank loan of$550,000 as shown in Table 1. <br /> <br />Table 2. <br /> <br />EDWD Funding;Scenario <br /> <br />Paid December 2000 <br /> <br />$300,000 <br /> <br />CWCB loan <br /> <br />$2,550,000 <br />$550.000 <br />$3,400,000 <br /> <br />Commercial bank loan <br /> <br />Total Funding <br /> <br />Staffhas analyzed the District's financial condition from audit reports for the years 1998 <br />through 2000 and for a future year when debt rdpayment on the CWCB loan and the <br />commercial bank loan begin. The ratios were calculated per Board Lending Policy No.4 <br />and are displayed in Table 2. The table demonstrates that the District is currently in sound <br />financial condition and is likely to remain so in the future. <br /> <br />. <br /> <br />4 <br />