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<br />) <br /> <br />Table 3. <br /> <br />EDWD Financial Analysis <br /> <br />Ratio Weak Average Strnng 1998-2000 Future Year <br /> Avo. <br />Operating Ratio <100 % 100,120 % >120% 105% 190% <br />Debt Service Coverage Ratio <100% 100-125% >125% 251% 103% <br />Debt per Tap >$5,000 $2,500-$5,000 <$2,500 $300 $2,200 <br />Cash Reserves to Current Expense <50% 50,100% >100% 143% 61% <br />IMcinthlyWaterBiIl and Taxes >$60 $30 $36 $37 <br /> <br />As a part of the feasibility study, the District prepared a 30-year financial projection for <br />the entire period of debt retirement. The projection indicates that some revenue deficits <br />may occur over the next five years (due mainly to capital improvement projects) but will <br />be covered by cash reserves and then eliminated in following years. <br /> <br />Amendment One <br /> <br />) <br /> <br />The District currently utilizes water service charges and property taxes. Most revenues <br />result from service charges but property taxes represent more than ten percent of the total. <br />The District will decide in the next few months whether to continue with the current <br />revenue structure or to rely exclusively upon service charges for revenue. <br /> <br />In May of 2002, the District will hold an election to request voter approval for: (1) a mill <br />levy for debt service retirement, (2) authorization to incur debt for the CWCB loan and <br />other borrowing as rnay be necessary for the proposed acquisition, and (3) to "De Bruce" <br />tap fee revenues. <br /> <br />Recommendation <br /> <br />Staff recommends a loan from the Construction Fund of up to $2,550,000 to the East <br />]jilfon W aterlJismcf for tlie piiIcltase of wafer -riglits ana ollier assets lis1e-Q ill: {Ir toe -- <br />Purchase Agreement of December 2000 between the Vidler Water Company and the <br />EDWD, and, (2) the Assignment Agreement of December 2000 between the City of <br />Golden, the Vidler Water Company and the EDWD (excluding an interest in the <br />augmentation plan in Case No. 97CW305). Three hundred thousand dollars ($300,000) of <br />the loan amount shall be for refmancing funds already expended by the EDWD under the <br />December 2000 Assignment Agreement. <br /> <br />The loan will be for a period of 30 years at the Municipal Middle Income lending rate as <br />may be adopted by the Board in November 2001. As collateral for the loan, the EDWD <br />will pledge District revenues backed by a rate covenant and the water rights and wells to <br />be acquired by the loan proceeds. <br /> <br />5 <br />