AEPA WIFIA PROGRAM SAMPLE CASH FLOW PRO FORMA FEBRUARY 2, 2016 This document is intended to serve as an example of a cash flow pro forma for WIFIA prospective borrowers. Prospective borrowers should use this file as guidance for the type of information that should be provided in the "Letter of Interest" pro forma submission. However, it should not be used as a template. Due to the variety of eligible borrowers and projects, some information provided in this file may not be applicable to certain projects and does not need to be included in every submission. Some projects should provide additional relevant information that is not provided herein. *This is a sample only. It is not intended to serve as a template, reflect any actual credit, or convey acceptable ratios and/or project costs. ------- SPECIMEN FINANCIAL PRO FORMA SOURCE AND USES OF FUNDS ($000; Year 2016) FINANCING: Treatment Plant Upgrade WWTP - Base Case USES SOURCES Facility Costs Gross Funding Requirements $ 180,728 Headworks $ 1,485 Primary Clarifiers 6,277 Trickling Filters & Pumping Stations 28,682 Public or Private Funds 35,530 Secondary Clarifiers 33,716 Public or Private Funds % 20% Chlorine Cantact Tank 2,521 Anaerobic Digesters 29,900 Debt 145,199 Solids Dewatering Building 10,887 Debt % 80% Site Work & Utilities 7,954 Relief Sewer 4,060 Project Services 44,184 Other 758 Subtotal - Facility Costs 170,422 Financing Costs Debt Composition Development Costs & Owner Contingency 2,500 WIFIA Debt 88,543 Closing Costs 3,076 % of Eligible Project Costs 49% Reserve Fund Capitalization 4,730 Capitalized Interest - - Senior Debt 56,656 Subtotal - Financing Costs 10,306 % of Eligible Project Costs 31% WIFIA Eligible Project Costs 180,728 Gross Funding Requirements $ 180,728 Total Funds Drawn $ 180,728 Page 1 ------- SPECIMEN FINANICIAL PRO FORMA Historical Actual Actual Actual Actual Actual Projected Projected Projected Projected Projected Projected Projected Final Maturity Prospective Borrower: Wastewater System 20XX < 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 > 20XX Financing: Treatment Plant Upgrade Scenario Number: 1 - WWTP - Base Case Income Statement Revenues Existing Operations Revenue $ 20,402 $ 20,606 $ 20,812 $ 21,020 $ 21,230 $ 21,443 $ 21,657 $ 21,874 $ 22,092 $ 22,313 $ 22,537 $ 22,762 XXX New Project Revenue ; ; ; ; ; ; 5.414 10.937 11.046 11.157 11.268 11.381 XXX Total Revenues 20,402 20,606 20,812 21,020 21,230 21,443 27,071 32,811 33,139 33,470 33,805 34,143 XXX Expenses Cash Operating Expenses 3,166 3,245 3,327 3,410 3,495 3,582 4,590 5,645 5,787 5,931 6,080 6,232 XXX Amortization Expense - - - - - 154 205 205 205 205 205 205 XXX Depreciation Expense 3,315 3,315 3,315 3,315 3,315 6,866 8,996 8,996 8,996 8,996 8,996 8,996 XXX Total Expenses 6,481 6,561 6,642 6,725 6,810 10,602 13,791 14,846 14,988 15,132 15,281 15,433 XXX Operating Income 13,921 14,045 14,170 14,295 14,420 10,841 13,281 17,964 18,151 18,338 18,524 18,710 XXX Non-Operating Items Add: Interest Income - - - - - - 189 189 189 189 189 189 XXX Less: Interest Expense WIFIA Debt - - - - - 1,968 2,553 2,468 2,382 2,293 2,201 2,106 XXX Project Senior Debt - - - - - 2,073 2,705 2,634 2,560 2,482 2,400 2,313 XXX Existing Senior Debt 2.400 2.300 2.200 2.100 2.000 1.900 1.800 1.700 1.600 1.500 1.400 1.300 XXX 2,400 2,300 2,200 2,100 2,000 5,942 7,058 6,803 6,542 6,274 6,000 5,719 XXX Net Income/Change in Net Assets $ 11,521 $ 11,745 $ 11,970 $ 12,195 $ 12,420 $ 4,899 $ 6,412 $ 11,350 $ 11,798 $ 12,253 $ 12,713 $ 13,180 XXX Page 2 ------- SPECIMEN FINANICIAL PRO FORMA Prospective Borrower: Wastewater System Financing: Treatment Plant Upgrade Scenario Number: 1 - WWTP - Base Case Balance Sheet ASSETS Current Assets Cash $ 13,326 $ 26,349 $ 39,597 $ 53,070 $ 66,768 $ 76,095 $ 84,284 $ 97,237 $ 111,661 $ 126,372 $ 141,369 $ 156,651 XXX Accounts Receivable (Net) 5,031 5,081 5,132 5,183 5,235 5,287 6,675 8,090 8,171 8,253 8,335 8,419 XXX Other ! ! ! ! ! ! ! ! ! L L L MK Total Current Assets 18,356 31,430 44,729 58,253 72,002 81,383 90,959 105,328 119,833 134,625 149,704 165,070 XXX Property, Plant & Equipment Non-Depreciable Assets ............ xxx Existing Depreciable Assets 82,880 82,880 82,880 82,880 82,880 82,880 82,880 82,880 82,880 82,880 82,880 82,880 XXX New Gross Assets ..... 170,422 170,422 170,422 170,422 170,422 170,422 170,422 XXX Accumulated Depr. (38.195^ (41.510^ (44.826^ (48.141^ (51.456^ (58.322^ (67.318^ (76.314^ (85.309^ (94.305^ (103.301^ (112.297^ XXX Net PP&E 44,685 41,370 38,054 34,739 31,424 194,981 185,985 176,989 167,993 158,997 150,001 141,005 XXX Other Assets Capitalized Financing Costs ..... 2,922 2,717 2,512 2,307 2,102 1,897 1,692 XXX R&R Reserve Fund ............ XXX Debt Service Reserve Fund ...... 4,730 4,730 4,730 4,730 4,730 4,730 XXX Other ; ; ; ; ; ; ; ; ; ; ; ; XXX Subtotal ..... 2,922 7,447 7,242 7,037 6,832 6,627 6,422 XXX Total Assets 63,041 72,800 82,783 92,992 103,426 279,286 284,391 289,559 294,862 300,454 306,332 312,497 XXX LIABILITIES Current Liabilities Accounts Payable 520 533 547 560 575 589 754 928 951 975 999 1,024 XXX Accrued Expenses ............ %XX Other ! ! ! ! ! ! ! ! ! L L L MK Subtotal 520 533 547 560 575 589 754 928 951 975 999 1,024 XXX Long-Term Liabilities Existing Senior Debt 46,000 44,000 42,000 40,000 38,000 36,000 34,000 32,000 30,000 28,000 26,000 24,000 XXX Project Senior Debt ..... 55,636 54,218 52,729 51,165 49,523 47,799 45,988 XXX WIFIA Debt ; ; ; ; ; 86.509 83.726 80.859 77.905 74.862 71.727 68.497 XXX Subtotal 46,000 - 42,000 40,000 38,000 178,146 171,944 165,587 159,069 152,384 145,525 138,485 XXX 44,000 Total Liabilities 46,520 44,533 42,547 40,560 38,575 178,735 172,698 166,515 160,021 153,359 146,525 139,509 XXX EQUITY/NET ASSETS Capital Stock ............ XXX Paid-in Capital ..... 30,800 35,530 35,530 35,530 35,530 35,530 35,530 XXX Retained Earnings/Change in Net Assets 16,521 28,266 40,236 52,432 64,852 69,751 76,163 87,514 99,312 111,565 124,278 137,458 XXX Additional Paid-in Capital : : - - - - - - - - - - XXX Total Capital 16,521 28,266 40,236 52,432 64,852 100,551 111,693 123,043 134,842 147,094 159,807 172,987 XXX Total Liabilities and Capital $ 63,041 $ 72,800 $ 82,783 $ 92,992 $ 103,426 $ 279,286 $ 284,391 $ 289,559 $ 294,862 $ 300,454 $ 306,332 $ 312,497 XXX Historical Actual Actual Actual Actual Actual Projected Projected Projected Projected Projected Projected Projected Final Maturity 20XX < 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 > 20XX Page 3 ------- SPECIMEN FINANICIAL PRO FORMA Prospective Borrower: Wastewater System Financing: Treatment Plant Upgrade Scenario Number: 1 - WWTP - Base Case Historical 20XX <- Actual 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Projected Projected Projected Projected Projected Projected Projected Final Maturity 2017 2018 2019 2020 2021 2022 2023 > 20XX Statement of Cashflows Operations Net Income/Change in Net Assets Depreciation (Increase) Decrease in Receivables (Increase) Prepaid Expenses (Increase) Customer Deposits (Increase) in Other Current Assets (Decrease) Accounts Payable (Decrease) Accrued Expenses (Decrease) Other Current Liabilities Cash Flow from Operations $ 11,521 $ 11,745 $ 11,970 $ 12,195 $ 12,420 $ 4,899 $ 6,412 $ 11,350 $ 11,798 $ 12,253 $ 12,713 $ 13,180 3,315 (31) 520 3,315 (50) 13 3,315 (51) 13 3,315 (51) 14 3,315 (52) 14 6,866 (52) 14 8,996 (1,388) 166 8,996 (1,415) 174 8,996 (81) 23 8,996 (82) 24 8,996 (83) 24 8,996 (83) 25 15,326 15,023 15,248 15,473 15,698 11,727 14,186 19,105 20,737 21,191 21,651 22,118 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX Investing Net New Non-Depreciable Assets Net New Depreciable Assets Cash Flow From Investing (170,422) (170,422) XXX XXX XXX Financing Net Increase (Decrease) in Existing Senior Debt (2,000) (2,000) (2,000) (2,000) (2,000) (2,000) (2,000) (2,000) (2,000) (2,000) (2,000) (2,000) XXX Net Increase (Decrease) in Project Senior Debt - - - - - 55,636 (1,418) (1,489) (1,564) (1,642) (1,724) (1,810) XXX Net Increase (Decrease) in WIFIA Debt - - - - - 86,509 (2,783) (2,867) (2,954) (3,043) (3,135) (3,230) XXX Issuance (Buy Back) of Capital Stock - - - - - 30,800 4,730 - - - - - XXX (Increase) in Other Financing Assets - - - - - (2,922) (4,525) 205 205 205 205 205 XXX Dividends Paid _ _ _ _ _ _ _ _ _ _ _ _ XXX Cash Flow From Financing (2,000) (2,000) (2,000) (2,000) (2,000) 168,023 (5,997) (6,152) (6,313) (6,480) (6,654) (6,835) XXX Net Change in Cash $ 13,326 $ 13,023 $ 13,248 $ 13,473 $ 13,698 $ 9,328 $ 8,189 $ 12,953 $ 14,424 $ 14,710 $ 14,997 $ 15,283 XXX Cash-Beginning of Year _ 13,326 26,349 39,597 53,070 66,768 76,095 84,284 97,237 111,661 126,372 141,369 XXX Cash-End of Year 13,326 26,349 39,597 53,070 66,768 76,095 84,284 97,237 111,661 126,372 141,369 156,651 XXX Page 4 ------- SPECIMEN FINANICIAL PRO FORMA Prospective Borrower: Wastewater System Historical 20XX < Actual 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Projected 2017 Projected 2018 Projected 2019 Projected 2020 Projected 2021 Projected 2022 Projected 2023 Final Maturit' > 20XX Financing: Treatment Plant Upgrade Scenario Number: 1 - WWTP - Base Case I Calculation of CFADS Revenue Existing Operations Revenue New Project Revenue Interest Income $ 20,402 $ 20,606 $ 20,812 $ 21,020 $ 21,230 $ 21,443 $ 21,657 5,414 189 $ 21,874 10,937 189 $ 22,092 11,046 189 $ 22,313 11,157 189 $ 22,537 11,268 189 $ 22,762 11,381 189 XXX XXX XXX Subtotal 20,402 20,606 20,812 21,020 21,230 21,443 27,261 33,000 33,328 33,659 33,994 34,332 XXX Expenses Operating Expenses Fixed Expenses Variable Costs Corporate Income Taxes 982 2,184 1,006 2,239 1,032 2,295 1,057 2,352 1,084 2,411 1,111 2,471 1,423 3,166 1,751 3,895 1,795 3,992 1,839 4,092 1,885 4,194 1,933 4,299 XXX XXX XXX Subtotal 3,166 3,245 3,327 3,410 3,495 3,582 4,590 5,645 5,787 5,931 6,080 6,232 XXX Capital Expenditures Inc. / (Dec.) in Working Cap. Reqs. Subtotal 37 37 37 37 37 37 38 38 38 38 38 38 1,222 1,222 1,242 1,242 58 58 58 58 58 58 58 58 XXX XXX XXX Cashflow Available for Debt Service 17,199 17,323 17,448 17,573 17,698 17,822 21,449 26,113 27,484 27,670 27,856 28,042 XXX Page 5 ------- SPECIMEN FINANICIAL PRO FORMA Historical Actual Actual Actual Actual Actual Projected Projected Projected Projected Projected Projected Projected Final Maturity Prospective Borrower: Wastewater System 20XX < 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 > 20XX Financing: Treatment Plant Upgrade Scenario Number: 1 - WWTP - Base Case Debt Service WIFIA Debt Opening Balance Drawdowns Repayments Closing Balance Interest (capitalized) Interest (expensed) $ - $ - $ - $ - $ - $ 88,543 2,034 $ 86,509 2,783 $ 83,726 2,867 $ 80,859 2,954 $ 77,905 3,043 $ 74,862 3,135 $ 71,727 3,230 XXX XXX XXX - - - - - 86,509 1,968 83,726 2,553 80,859 2,468 77,905 2,382 74,862 2,293 71,727 2,201 68,497 2,106 XXX XXX XXX Total Interest - - - - - 1,968 2,553 2,468 2,382 2,293 2,201 2,106 XXX WIFIA Debt Service - - - - - 4,002 5,336 5,336 5,336 5,336 5,336 5,336 XXX Project Senior Debt Opening Balance $ - $ - $ - $ - $ - $ - $ 55,636 $ 54,218 $ 52,729 $ 51,165 $ 49,523 $ 47,799 XXX Drawdowns - - - - - 56,656 - - - - - - XXX Repayments - - - - - 1,019 1,418 1,489 1,564 1,642 1,724 1,810 XXX Closing Balance - - - - - 55,636 54,218 52,729 51,165 49,523 47,799 45,988 XXX Interest (capitalized) _ _ _ _ _ _ _ _ _ _ _ _ XXX Interest (expensed) - - - - - 2,073 2,705 2,634 2,560 2,482 2,400 2,313 XXX - - - - - 2,073 2,705 2,634 2,560 2,482 2,400 2,313 XXX Project Senior Debt Service - - - - - 3,093 4,124 4,124 4,124 4,124 4,124 4,124 XXX Existing Senior Debt Opening Balance $ 48,000 $ 46,000 $ 44,000 $ 42,000 $ 40,000 $ 38,000 $ 36,000 $ 34,000 $ 32,000 $ 30,000 $ 28,000 $ 26,000 XXX Principal Payments 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 XXX Interest Payments 2,400 2,300 2,200 2,100 2,000 1,900 1,800 1,700 1,600 1,500 1,400 1,300 Closing Balance 46,000 44,000 42,000 40,000 38,000 36,000 34,000 32,000 30,000 28,000 26,000 24,000 XXX Existing Senior Debt Service 4,400 4,300 4,200 4,100 4,000 3,900 3,800 3,700 3,600 3,500 3,400 3,300 XXX Total Debt Service WIFIA Debt Service $ - $ - $ - $ - $ - $ 4,002 $ 5,336 $ 5,336 $ 5,336 $ 5,336 $ 5,336 $ 5,336 XXX Project Senior Debt Service - - - - - 3,093 4,124 4,124 4,124 4,124 4,124 4,124 XXX Existing Senior Debt Service 4,400 4,300 4,200 4,100 4,000 3,900 3,800 3,700 3,600 3,500 3,400 3,300 XXX 4,400 4,300 4,200 4,100 4,000 10,995 13,260 13,160 13,060 12,960 12,860 12,760 XXX Cash Flow Available for Debt Service $ 17,199 $ 17,323 $ 17,448 $ 17,573 $ 17,698 $ 17,822 $ 21,449 $ 26,113 $ 27,484 $ 27,670 $ 27,856 $ 28,042 XXX Senior Debt Service Coverage 3.91 X 4.03X 4.15x 4.29X 4.42X 2.55X 2.71 X 3.34X 3.56X 3.63X 3.70X 3.78X XXX WIFIA Debt Service Coverage N/A N/A N/A N/A N/A 1.62X 1.62X 1.98X 2.1 Ox 2.14X 2.17x 2.20X XXX Page 6 ------- |