C150117 Contract

• Contract/PO #: C150117
• Contractor Name: Central Colorado Water Conservancy District
• Contract Type: Loan
• Water District: 0
• County: Weld
• Bill Number: SB 03-110
• Loan Projects - Doc Type: Contract Documents

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demand the consummation of the loan transaction contemplated herein for the
purposes approved by the voters November 5, 2002;

THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE
GROUND WATER MANAGEMENT SUBDISTRICT OF THE CENTRAL COLORADO
WATER CONSERVANCY DISTRICT IN THE COUNTIES OF WELD, ADAMS AND
MORGAN, AND THE STATE OF COLORADO:

1. The Subdistrict shall endeavor to secure a loan from the State of
Colorado, acting for the use and benefit of the Department of Natural Resources,
Colorado Water Conservation Board, in the principal amount of $15,000,000, at a rate
of interest of 2.75% per annum, for a term of 30 years, for the purpose of1) purchasing
water rights, 2) the construction and improvement of water storage reservoirs for
storage, drought mitigation; water conservation, open space and recreational purposes,
3) for the construction and improvement of water recharge facilities for augmentation,
and 4) for such other and further purposes as are consistent with Bond Ballot Question
passed November 5, 2002 (the "Loan").

2. Proceeds from the Loan shall be applied as follows: 1) up to $10,000,000
may be applied to refund outstanding Limited Tax Water Conservancy Bonds issued
April 17, 2003; 2) up to $10,000,000 may be applied the 1) purchase of water rights, 2)
the construction and improvement of water storage reservoirs for storage, drought
mitigation, water conservation, open space and recreational purposesl 3) to the
construction and improvement of water recharge facilities for augmentation, 4) to the
reimbursement of legal and other costs incurred as a result of the loan transaction, and
4) to such other and further purposes as are consistent wi~hBond Ballot Question
passed November 5, 2002.

3. The Loan shall be secured by "Pledged Revenues." "Pledged Revenues"
shall consist of a) the "Limited Mil Levy;" b) "Specific Ownership Taxes;" and c) any
other legally available moneys. The "Limited Mil Levy" is generally defined as an ad
valorem mil levy (a mil being equal to 1/10 of 1 cent) imposed on all taxable property in
the Subdistrict each year in an amount sufficient to pay the principal and interest due on
the Loan and all other operating costs of the Subdistrict; provided however that such mil
levy shall not exceed 6 mils, except as permitted by the Water Conservancy Act. The
"Specific Ownership Taxes" pledged to the Loan are the specific ownership taxes
received by the Subdistrict. Specific ownership taxes are set by the state, collected by
counties, and distributed to every taxing entity within a county in proportion that the
taxing entity~s ad valorem taxes represents of the cumulative amount of ad valorem
taxes levied county-wide.

4. The Loan shall be a limited tax general obligation of the Subdistrict,
payable from the Pledged Revenues and the District pledges its full faith and credit to
the payment of principal of, premium, if any, and interest on the Loan. The Loan and
any. Parity Obligations, together with the interest thereon and any premium due in
connection therewith, shall be payable solely from and to the extent of the Pledged
C:\E.Drive\CWCB\CWCB loan res 030715.doc