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<br />RECEIVED <br /> <br />l"lA~ 2 9 2001 <br /> <br />MacDOUGAll, WOlDRIDGE & WORLEY, P.C, <br />530 Communication Circle, Suite 204 <br />Colorado Springs, CO 80905-1743 <br /> <br />Colorado Water Conservation Board <br /> <br />M.E. MacDougall <br />Julianne M. Woldridge <br />Henry D. Worley <br /> <br />macdougall@macdougalllaw,com <br /> <br />Telephone <br />(719) 520-9288 <br />Fax <br />(719) 520-9447 <br /> <br />March 28, 2001 <br /> <br />Via Fax and Mail: 720-544-2972 <br /> <br />Mr. Leroy Cruz <br />Rural Development <br />655 Partet Street <br />lakewood, CO 80215 <br /> <br />Re: City of Victor <br />Request for Subordination, Parity or Waiver <br /> <br />Dear Mr. Cruz: <br /> <br />This firm represents the City of Victor, Colorado. <br /> <br />Victor issued its "Sewer Revenue Bond", series 1994, principal amount, One Million <br />Dollars, pursuant to Ordinance 349, Series 1994, adopted November 7, 1994, which are <br />held by your agency. <br /> <br />Victor has applied for and received approval of a $600,000 loan from the Colorado <br />Water Conservation Board, which will be used, together with a $280,000 grant from <br />Colorado local Affairs, and $246,000 of "in-kind" services from Victor, to rehabilitate the <br />dam, outlet works, and spillway for Victor Reservoir No.2, the key facility in the Victor <br />water system, to meet dam safety requirements. The dam is about 100 years old. <br /> <br />The Colorado Water Conservation Board requires either a first lien on water system <br />revenues or parity with Rural Development. <br /> <br />Victor operates a joint Water and Sewer Enterprise (under Section 20 of Article X <br />of the Colorado Constitution - usually called "Taxpayer's Bill of Rights"), and Rural <br />Development, under the 1994 Ordinance No. 349, has a "first lien" on those revenues. <br />Unfortunately, because the water and sewer revenues are co-mingled by the Enterprise, <br />the Colorado Water Conservation Board is wary. They feel it might not be plain enough <br />to be sure the Colorado Water Conservation Board would have a first lien on the water <br />system revenues. <br /> <br />122-59L r:\Victor\Cruz 3-28-01 <br />