BOARD02506

• Board Meeting Date: 11/25/2002
• Description: CF Section - Mancos Water Conservancy District
• Board Meetings - Doc Type: Memo

Mancos Water Conservancy District Agenda Item 20a.
November 25-26, 2002

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Financial Ratio Without the oroiect With the oroiect
Operating Ratio (revenue/expense) 100% (average) 114% (average)
weak: less than 100%
average: 100% - 120%
strano: areater than 120%
Debit Service Coverage Ratio 101% (average) 101% (average)
(revenues-expenses)/debt service
weak: less than 100%
average: 100% . 125%
strano: areater than 125%
Cash Reserves to Current Expense 51% (average) 22%% (weak)
weak: less than 50%
average: 50% - 100%
strona: areater than 100%
Annual Cost per Acre-Foot $10.68 (average) $30.39 (weak)
(Average annual diversions 9,194
weak: greater than $20
average: $10 - $20
strona: less than $10

Table 5. Financial Ratios

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As security for the loan the MWCD will pledge assessments backed by rate covenant.
(This security is in compliance with CWCB Loan Policy #5 (Collateral).

Recommendation
Staff recommends a loan in a maximum amount of $5,486,531 to the Mancos Water
Conservancy District, acting by and through its water activity enterprise. The loan is for _
up to 90% of the costs of a project to rehabilitate District facilities, and to consolidate _
existing debt. The recommended loan terms are 30 years at 2.8%. As security for the
loan, the Borrower will pledge collateral in accordance with CWCB Loan Policy #5. This
loan would be funded from the Severance Tax Trust Fund - Perpetual Base Account.

Staff recommends that the District be allowed to use this loan to refinance and
consolidate existing debt.

Staff further recommends that final approval of the loan be conditioned upon all other
standard contracting provisions of the CWCS'.

cc: Gary Kennedy, MWCD
Linda Bassi, AGO

Attachment

C:\MWCD 1102 memo

L:\wctrans\boardmem~nov02\20a Mancos WCD

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