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<br />those expressed in the January 15th memo with regard to District revenues and debt <br />service coverage. However, as stated in the January memo, one of the main purposes of <br />the refinancing is to reduce debt service and to provide for equal annual payments as <br />opposed to the existing variable payment arrangement with the Bureau. <br /> <br />Recommendation <br />Staff recommends increasing the Purgatoire River Water Conservancy District's <br />authorization from $500,000 to $1,000,000 for the purpose of retiring the District's <br />existing indebtedness to the Bureau of Reclamation for irrigation capacity in the Trinidad <br />Reservoir Project. Staff recommends a 30-year term for this increment of financing and <br />the Agricultural lending rate for 1998 as may be approved by the Board in November <br />1997. <br /> <br />As security for the loan, the District will pledge all District revenues and a certificate of <br />deposit equivalent in amount to two annual CWCB loan payments. <br /> <br />Staff further recommends the following conditions: <br /> <br />Prior to entering into a contract for a Construction Fund loan, the District will provide the <br />CWCB staff with: <br /> <br />1. documentation as to the Congressional and Bureau of Reclamation authorization for <br />retiring the existing loan, <br /> <br />2. the exact authorized payoff amount for the existing loan, and <br /> <br />3. financial projections and documentation as requested by staff demonstrating that <br />District revenues will be adequate to cover all foreseeable operating and maintenance <br />expenses as well as all debt service likely to be incurred in the foreseeable future. <br /> <br />The District will provide the Director of the CWCB with an annual audited report of the <br />District's financial condition for each year of the period ofCWCB debt retirement and <br />will provide the Director with a letter of explanation of the circumstances in which the <br />sum of operating expenses plus debt service exceeds District revenues in any year in <br />which such an event may occur. <br /> <br />cc: Board of Directors, PRWCD <br />Thelma Lujan, PRWCD <br />Jeris Danielson, Danielson & Assoc. <br />Sandy MacDougall, Esq. <br />Linda Bassi, AGO <br /> <br />Attachments <br /> <br />2 <br /> <br />. ... <br />. , <br />-.,"' <br /> <br />;. <br /> <br />.... <br /> <br />e <br /> <br />e <br /> <br />e <br />