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<br />~{, .., <br /> <br />~> <br /> <br />STATE OF COLORADO <br /> <br />Colorado Water Conservation Board <br /> <br />Department of Natural Resources <br />1313 Shennan Street, Room 721 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3441 <br />FAX: (303) 866-4474 ' <br />www.cwcb.state.co.us <br /> <br />MEMORANDUM <br /> <br /> <br />Governor <br /> <br />Greg E, Walcher <br />Executive Director <br /> <br />TO: <br /> <br />Colorado Water Conservation Board Members <br /> <br />Rod Kuharicb <br />CWCB DirectoI' <br /> <br />FROM: <br /> <br />John Van Sciver --:J1AJv,/ (' <br />Mike Serlet, P.E., Chief "../II! <br />Water Supply Planning and Finance Section. <br /> <br />Dan McAuliffe <br />Deputy Director <br /> <br />DATE: March 4, 2002 <br /> <br />SUBJECT: Agenda Item 12., March 21-22, 2002 Board Meeting <br />The Tunnel Water Company (Laramie-Poudre Tunnel) <br />Borrower Request to Lower Interest Rate on Existing Loans. <br /> <br />-------------------------------------------------------------------------------------------------------- <br /> <br />Introduction <br />The Tunnel Water Company (TWC) has two loans with the CWCS: <br /> <br />. $1,6 million Emergency loan approved by the CWCS September 25, 2000, 4,5% for 30 years, <br />. $ 2.06 million loan recommended by the CWCS January 24, 2001, 4.3% for 30 years, <br /> <br />TWC has asked that the interest rate for each of these loans be reduced to the CWCS Agricultural <br />rate. The reason for the request is based on the fact that although certain municipalities own <br />shares in the TWC, the water from those shares is actually being leased back and used for <br />agricultural purposes, (Please see attached letter from the Tunnel Water Company, dated Januanj <br />15,2002,) <br /> <br />Background <br />The TWC applied for CWCS financing to rehabilitate the Laramie-Poudre Tunnel, which had <br />collapsed in May 2000, TWC shares are owned by a combination of agricultural and municipal <br />interests, There are 450 shares in the Company, of which 296 are agricultural shares (66%) and <br />154 are municipal (34%). <br /> <br />Staff calculated a blended interest rate for each loan based on the percentage ownership of shares <br />for each type of borrower (e,g, Agricultural, Municipal high income, Municipal average income, <br />etc.), applying the CWCS interest rates in effect at the time the loans were approved, in <br />accordance with CWCS Policy No, 7,(See attached Tunnel Water Company Board Memo dated <br />January 11,2001, page 4,} <br />