WSP11447

• File Number: 8542
• Description: Conejos Division - Platoro
• State: CO
• Basin: Rio Grande
• Water Division: 3
• Date: 12/2/1987
• Title: Agenda Item 11 - December 10-11 1987 - Board Meeting -- Purchase of Platoro Reservoir
• Water Supply Pro - Doc Type: Board Memo

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C) which is to be reimbursed at 5% interest over 40 years, $100,000
Y'"'1 of which is non_reimbursable to Borrower for the purchase of
<,...) Platoro Reservoir: and

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WHEREAS, the repayment of the proj ect must come from reve-
nues from water users in the form of water user or storage use
fees, since the Borrower has no available ad valorem tax capacity
within the statutorily authorized ceiling on the mil levy; and

WHEREAS, it appears that with the creation of a reserve
fund, the flow of revenue to repay the obligation is reasonably
secure;

NOW,
covenants
folloWS:

THEREFORE, in consideration of the mutual and dependent
herein contained, it is agreed by the parties hereto as

A.

The Borrower agrees that it shall:

a. during the first 2 years, Borrower will pay
installments into a reserve escrow account maintained for the
benefit of the colorado Water conservation Board.

1. Repay the loan of $400,000 as folloWS:

b. during the next 38 years, Borrower will pay
installments to, the colorado Water conservation Board.

c. Installments shall be equal payments of
$26,085. This is based upon $440,000, which is the principal
amount including simple interest for the first two years at 5%,
amortized in equal annual payments over 38 years at 5% interest.

d. payments to escrow will commence the end of
the first calendar year following the first full irrigation
season (April through september) following transfer of title to
the project from the united states to Borrower. All payments
will be due on or before December 31 of each year.

e. In the event revenues from water user or
storage fees are insufficient in any year to first pay up to
$25,000 toward annual operating and maintenance costs, and then
to pay all of the required annual payment, then, funds from the
reserve account will be applied to make up any deficiency. In
the next ensuing years as soon thereafter as possible, Borrower
will make such additional payment as is necessary to replace
funds from the reserve account. In the event the reserve account
has been totally used and not yet replaced, and revenues are
insufficient to first pay up to $25,000 toward operation and
maintenance and then make all the required annual payments, there
shall be no further obligation that year, provided that any
deficiency in any annual payment shall be repaid as soon as
thereafter possible from available revenues. such deficiency
shall be repaid first before replacement of the reserve account.

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