C153701 Consents and certificates

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~;;~-- . -, MEMORANDUM TO: The City of Fort Morgan File FROM: Bill Green DATE: December 6, 1996 SUBJECT: Fort Morgan Water Project - Meeting of Funding Agencies Leroy Cruz of Rural Development (RD) asked for a meeting of several state and federal funding agencies on November 14, 1996 to report to us on meetings with the RD national staffin Washington the week before regarding Fort Morgan's water project. Present at the meeting on November 14 were representatives of: RD, the Economic Development Administration, Dept. of Local Affairs, the Water & Power Authority and the CWCB. These notes are my best recollection of that meeting and may not be complete, Cruz and representatives of Fort Morgan met with the RD national office to discuss the City's request for $30 million in RD funding for the Fort Morgan water supply project ($18 m in loans and $12 m in grants). They were told that prospects are not good and that the most Fort Morgan could expect would be about $1 Om in loans and $5 m in grants. RD suggested that more local funding for the project should be considered. RD has to be able to show that funding is available to complete the entire project (under the Safe Drinking Water Act?) in order to commit funds. The total cost of the Fort Morgan project is now estimated at $44 m. lfRD can provide an additional $15 m, the City would still be about $15 m short. The purpose of the November 14 meeting was to ask for the opinions of the representatives ofthe various funding agencies with regard to additional loans or grants from their respective agencies. The response from all meeting participants was essentially negative. Dan Law suggested the City consider a GO bond issue. We indicated that our Board was concerned that no election had been held by the City on the project and that we would be reluctant to approach our Board again until after an election. cc: David Harrison Chuck Lile Bill Stanton