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<br />Agenda Item 17h. <br />November 24, 1997 <br />Page 2 <br /> <br />(Updated December 3, 1997) <br /> <br />DISCUSSION <br /> <br />The purpose of the project loan is to rehabilitate the City's primary storage reservoir. <br /> <br />The Idaho Springs Reservoir will have a capacity of 227 AF after rehabilitation. It is currently <br />restricted to a 120 AF capacity. <br /> <br />The City plans to complete fInal design of the project in 1999. Construction is expected to begin <br />in the year 2000, and be completed in 2001. <br /> <br />The City will experience heavy debt repayment requirements through the year 2000. Converting <br />the existing $130K Emergency loan into a Standard 30 year amortized loan will assist the City in <br />year 1999 (when the balloon payment is currently due), and will restore these funds to the <br />Emergency account where they can be loaned to others with emergency needs. <br /> <br />The City of Idaho Springs had a Median Household Income that falls between 80 % and 110% of <br />the Statewide MHI for 1990. A loan to the City should thus be at the "Standard Income" rate for <br />a municipality, as set by the CWCB on November 24, 1997. <br /> <br />COLLATERAL <br /> <br />The City of Idaho Springs has a separate water enterprise, which receives revenues from its <br />water customers. The CWCB will take a collateral interest in this stream of revenues, and will <br />be in a parity position with all existing debts of the enterprise. <br /> <br />The City can also provide a certifIcate of deposit in amount of one annual payment. <br /> <br />STAFF RECOMMENDATION <br /> <br />The staff recommends: <br /> <br />1. That a Construction Fund Authorization in an amount of $825,000, not to exceed 75% of <br />actual project costs be recommended for the City of Idaho Springs (and/or the City of <br />Idaho Springs Water Enterprise) to rehabilitate the City's Idaho Springs Reservoir, and <br /> <br />2. That a Construction Fund Authorization in an amount of $130,000 be recommended for <br />the City of Idaho Springs (and/or the City of Idaho Springs Water Enterprise) to <br />refinance the City's existing emergency loan with the CWCR, and <br />