PROJ00432 App Letter

• Contract/PO #: C153738
• Contractor Name: Georgetown, Town of
• Contract Type: Loan
• Water District: 6
• County: Clear Creek
• Bill Number: SB 96-153
• Loan Projects - Doc Type: Feasibility Study

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Agenda Item lOe.
January 24, 1996

3

(c) Financial Condition:
The Town's Water Enterprise issued $145,000 in bonds in 1988, and is current on all interest
payments, Annual interest only payments are $11570 through 1999, Starting in the year 2000
the interest payments start declining as the principal is also retired, with final payment in 2003.
Sufficient funds are currently being escrowed in advance, from water revenues, to make all
principal and interest payments as they become due,

The financial impact of the water acquisition project on water rates would be about $3.00 per
month for the existing customer base of 388 ($13,900/year CWCB loan -;- 388 customers -;- 12
months per year), Water rates are currently very low ($14.20 per month) compared to the
Statewide average of $33. Repayment of the CWCB loan can easily be accommodated by a
small rate increase, if necessary,

STAFF RECOMMENDATION

The staff recommends:

1. That a construction fund loan In an amount of $206,250 not to exceed 75% of
actual total cost, be recommended for The Town of Georgetown, to purchase water
rights or shares, and

2, That the financing terms shall be at an annual percentage rate of 5.25%,
for a duration of 30 years, and

3, That loan approval shall be contingent upon completion of the feasibility study,
and upon all standard contracting provisions of the CWCB, as determined by the
CWCB Director, and

4, That security for the loan shall be a collateral interest in the stream of income
derived Town's Water Enterprise (rom the sale of water, and the water shares or
rights purchased.

Action Taken bv the CWCB, January 24.1922

The CWCB approved the Stafr Recommendations #1, #2, and #3. The CWCB
modified Staff Recommendation #4, approving the use of the stream of income
derived from the Town's Water Enterprise, and other security to be determined
through agreement of Staff, the Attorney General's Office, and the Borrower, Staff
will report on the specific security used, as an inrormational item at a future CWCB
meeting.

Attachments

1. ewes Memorandum November 6-7,1995 (Updated 11/22/95)
2. ewes Letter to Town of Georgetown. dated 11128/95
3. Draft Feasibility Study, McLaughlin Water Engineers, Lld" January 8. 1996
4. Letter from Mclaughlin Water Engineers, dated January 11. 1996 (Share Prices of FHL)
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