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a little weak when compazed to operating expenses, but are probably not a matter of <br />concem. Total equity, or net worth, in 1997 was about $26 million. Total current long- <br />term debt amounts to $6:7 million, which will be retired by Mazch 2002. <br />Table 3. Finaucial Indicators, 1995 —1997 <br />(1) Operating revenue/(operating expense — depreciation) <br />(2) (Total eligible revenue — actual operating expense)ldebt service <br />Consolidated is requesting a ten-year loan for $10 million or approximately 50 percent of <br />total proj ect costs. Staff recommends the municipal high income lending rate for this loan <br />based on the 1990 median household income of $34,000 for the City of Lakewood. The <br />actual rate would be 4.75 percent, which is the municipal high-income rate adjusted for a <br />ten-year term. <br />For the approximately $11.6 million of project costs not covered by the requested <br />Construction Fund loan, the Company has already expended $2.7 million. The remaining <br />`?'7 $8.9 million will be covered through a series of water rate increases averaging about 3.5 <br />to 4.0 percent per yeaz over the next four yeazs. <br />A 14-yeaz financial projection provided by the Company indicates that future revenues <br />will be sufficient to provide an adequate cash reserve through the period of construction <br />and CWCB debt retirement. Debt service coverage ratios aze weak for the years 1999, <br />2000 and 2001 but return to an acceptable level in each year thereafter. Tap fees amount <br />to only a very minor part of total revenues. <br />The average residential water bill is expected to increase from the current level of $32 per <br />month to about $37 per month over the next four years as a result of the project. Water <br />rates are expected to decrease somewhat in following yeazs. <br />Alternative Sources of Fundine <br />As a private entity, Consolidated is not eligible for funding from the Colorado Water <br />Resources and Power Development Authority or from other agencies that provide <br />funding to public entities. The Company does not have taxing authority or the ability to <br />issue municipal bonds. The only option available is commercial bank lending which <br />Consolidated estimates would increase the cost ofproject financing by about $3.4 <br />million. <br />