BOARD02039

• Board Meeting Date: 7/20/2004
• Description: CF Section - New Loans - Pinewood Springs Water District - New Reservoir and Raw Water Pipeline Construction and Water Rights Purchase
• Board Meetings - Doc Type: Memo

Pinewood Springs Water District
July 20,21.2004

Agenda Item 14e

Table 2 is a summary of the financial aspects of the project. A CWCB loan of $2,033,850 would
have an annual payment of $129,380 (including the 10% reserve requirement) at the loan terms of
4.0% for 30 years. PSWD will also obtain a direct loan from the DWRF for $875,625 at 3.5% for 20
years, with an annual payment of $61,245.

Table 2. Financial Summa

$3,109,100
$2,711,805
268
$2,033,850
$129,380
$875,625
$61,245
$62
$62-
$59.27

-Both loans will be paid off by an increase in the property tax mill levy. The levy was raised
to 10.500 in 2004, and it is anticipated that it will be raised to 14.930 in the future.

Creditworthiness: PSWD has two outstanding long-term debts'. (1) a general obligation bond
issue (1998 - $500,000) with a remaining amount of $360,000 through 2015, and (2) a 1992 -
$20,000 Impact Assistance Loan through the Department of Local Affairs with a remaining amount
of $6,904 through 2008. Combined annual payments on both obligations is about $47,000.

Table 2 shows the Financial Ratios for PSWD and indicates strong ability to cover the CWCB and
DWRF loans with the increased property tax, although a number of the other ratios are weak.

Table 3. Financial Ratios

Financial Ratio Without With project
the project Future Years
(Aver. 2001-02) (2007+)
Operating Ratio (revenue/expense)
weak: less than 100% 87% (1) 93%
average: 100% - 120% (weak) (weak)
strano: oreaterthan 120%
Debt Service Coverage Ratio
(revenues-expenses)/debt service 79% (1) 136%
weak: less than 100% (weak) (strong)
average: 100% - 125%
strong: greater than 125%
Cash Reserves to Current Expense
weak: less than 50% 27% 21%
average: 50% - 100% (aver.) (weak)
strano: oreaterthan 100%
Debt per Tap (268 taps)
weak: greater than $5000 $1590 $12,340
average: $2500 - $5000 (strong) (weak)
strong: less than $2500
Monthly Water Bill
average: $30 $55 $62 (2)
weak: greater than $60 (average.) (weak)

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