C153716 Refinancing Approval Letter

• Contract/PO #: C153716
• Contractor Name: Purgatorie River Water Conservancy District
• Contract Type: Grant
• Water District: 0
• County: Las Animas
• Loan Projects - Doc Type: Approval Letter

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STATE OF COLORADO

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Colorado Water Conservation Board

Department of Natural Resources

721 Centennial Building
1 31 3 Sherman Street
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]

Roy Romer
Governor

MEMORANDUM

James S. Lochhead
Execullve Director, DNR

Daries C. Lite, PE.
Diredor, eWeB

TO:

Colorado Water Conservation Board Members

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Bill Green, P.E. F/
Project Planning and Construction

FROM:

DA TE:

November 17, 1997

SUBJECT:

Agenda Item 16.a., November 24 and 25,1997 Board Meeting -
Water Project Construction Loan Program - Request for Approval
for Revised Loans on Approved Projects - Purgatoire River Water
Cons. Dist. - Trinidad Project Refinance

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Introduction ~
The Purgatoire River Water Conservancy District is requesting an additional authorization
of $500,000 from the Construction Fund to allow the District to retire its indebtedness to
the Bureau ofRecIamation (Bureau) for irrigation capacity in the Trinidad Reservoir
Project. PI "ease see the attached memorandum, project summary, and map.

Back2round
In January 1997, the Board recommended and the legislature subsequently authorized
$500,000 in funding (SB 97-008) to the Purgatoire River Water Conservancy District for
the possible refinancing of the District's irrigation capacity in the Trinidad Reservoir
Project. The loan was approved at a lending rate of3.75 percent for 30 years. My
memorandum to the Board of January 15, 1997 discussing the District, the loan proposal,
the Bureau loan, and the financial considerations of the proposal along with the staff
recommendation is attached.

The Board's action of January this year was based on the concept of multiple increments
of funding for the refinancing to be considered in the years following 1997 and to take into
consideration the availability ofloan funds in any given year. A very preliminary estimate
of the amount required for the refinancing is $1.5 million. The District may be able to
contribute as much as $200,000 in its own funds.

Discussion
The District would like to apply to the Board for an additional authorization of $500,000
in 1998 for a total commitment of$I,OOO,OOO. Staff currently has the same concerns as