Laserfiche WebLink
PARITY CERTIFICATE <br />Pursuant to Section 8(e) of the Loan Contract (the "Loan Contract") between the Town of <br />Hillrose, Colorado Water Enterprise (the "Issuer") and the State of Colorado Department <br />of Natural Resources, Colorado Water Conservation Board dated December 3, 2004, as <br />well as pursuant to Exhibit F, Section B of the Loan Contract (the "Loan Contract") <br />between the Town of Hillrose, Colorado Water Enterprise (the "Issuer") and the Colorado <br />Water Resources and Power Development Authority dated May 31, 2007, we, the <br />undersigned, as a firm of independent certified public accountants, do hereby certify, <br />according to the records of the Issuer in our official possession as follows: <br />1. The revenues of the Issuer for the 12 month period beginning January 1, 2007 <br />and ending on December 31, 2007 (within the 18 months immediately preceding <br />the date of issuance of the Series 2008A Bonds and the Colorado Water <br />Conservation Board Contract #C150254) were not sufficient to pay the Issuer's <br />annual operating and maintenance expenses, annual debt service on all <br />outstanding indebtedness having a lien on the pledged revenues, the annual <br />debt service on the proposed indebtedness to be issued, and all required <br />deposits to any reserve funds required by the Loan Contract or by the lender(s) <br />of any indebtedness having a lien on the pledged revenues as set forth on <br />Exhibit A attached hereto. <br />In an effort to generate additional revenues, the Town has increased rates by <br />$27 per user effective October 1, 2008. The increase in rates should provide for <br />sufficient revenues to meet its annual operating and maintenance expenses, <br />annual debt service on all outstanding indebtedness having a lien on the <br />pledged revenues, the annual debt service on the proposed indebtedness to be <br />issued, and all required deposits to any reserve funds. However, the Town's <br />ability to meet its debt service obligations on an ongoing basis is ultimately <br />dependent on its ability to collect the rates charged to its system users on a <br />timely basis. <br />2. The analysis of the revenues is based on the rate structure in effect at December <br />31, 2007. <br />3. No more than 10% of total revenues have originated from tap and/or connection <br />fees. <br />IN WITNESS WHEREOF, we have hereunto subscribed our official signature as of the <br />17+� day of September, 2008. <br />Lauer, Szabo & Associates, P.C. <br />Sterling, Colorado <br />