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<br />~; '~~ eo-da-lWU . <br /> <br />. <br /> <br />A 40-year loan with payments at $150,000 per year for the first 5 years and at about <br />$211,000 per year for the remaining 35 years would assist the Association in maintaining its <br />existing level of membership dues for the next few years and would result in a total effective <br />rate of return to the Construction Fund of about 4.25 percent for this loan. <br /> <br />RECOMMENDATION <br /> <br />. <br /> <br />Staff fmds the proposed project to be financially and technically feasible and recommends that <br />the Board authorize the staff to enter into contract negotiations with the Lower Arkansas <br />Water Management Association (LA WMA) for the purpose of a loan from the Construction <br />Fund, to be authorized in SB 96-124, in an amount not to exceed $3,750,000.00. Repayment <br />will be over a period of 40 years with annual payments of W8,9Q0 per year in each of the <br />first five years of the repayment period increasing to approximately~ 1, co per year in each <br />of the remaining 35 years such that the effective rate of return to the Construction Fund <br />amounts to". percent. The purpose of the loan is to permit LA WMA to purchase the lands <br />and wate rights needed for an augmentation program to replace members' well depletions to <br />Colorad surface rights and usable Stateline flows in the Arkansas Basin. The funds <br />previo ly loaned to LA WMA for option payments on the properties to be acquired will be <br />repai to the Arkansas River Augmentation Loan Account with a portion of these new loan <br />fund . r. ,-/) D ~ FA <br />/V 31~~ -- ~ <br />The loan would be maoe subject to the following conditions: <br /> <br />(1) <br /> <br />All lands and water rights acquired by LA WMA ~ the proceeds of this loan <br /> <br />~~o~~ ~~~~e: :~:~~~ :~rth~ei~: ~~~[e~~;l~I~~~t~2~~1 a"~~~ <br /> <br />(2) Before any funds are a anced, LA WMA will demonstrate to the satisfaction of <br />the staff that it has fully met all of the requirements of SB96-124 with regard to <br />the loan, and <br /> <br /> <br />(3) The loan shall be subject to all standard contracting requirements of the CWCB. <br /> <br />WEG/scm <br /> <br />Attachments <br /> <br />. <br /> <br />cc: Don Higbee, LA WMA <br />Linda Bassi, AG's Office <br />Duane Helton, Helton and Williamsen <br />Amelia Whiting, Moses, Wittemeyer, Harrison and Woodruff ~; <br /> <br />~__IO.jm (; 4 gq I j 5 !O. I.c 0 <br />f <br /> <br />- 5 - <br />