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<br />02/02/2001 15:44 <br /> <br />3039252705 <br /> <br />TOWN OF ERIE <br /> <br />PAGE 02 <br /> <br />0.- -;: .. . <br />;/ <br /> <br /> <br />TOWN OF ERIE <br /> <br />1874 <br /> <br />F'''-''~~r 2 20tH <br />. ~V~.~] , <br /> <br />Biil Green,F.E., IVtaD~g~hofPlahrting <br />Colorado"W~ter Conservation Boar~ <br />Department ofN atutalRe$ource~: <br />721 Cent~t1hiaJ Building <br />~~1313'Sliehnan Street- <br />;Denver, CO 8U203' <br /> <br />Dead~ill; <br /> <br />!haUl< you for agreeing to nieet with me next Thursday, February SUI. The purpose of my <br />,iequ~stis tocome to amutuaUy agreeable resolution concerning ,the Town of Erie <br />out~tanding,Water Loan C153668. <br /> <br />As you are aware, theTown set aside $1,550,000 in an escrow account at the Che <br />.,Creek Bank in December 1998, pending the Board's determination on the Reques.t for <br />~Parity. The. request was denied. until the Town could meet the parity test. Unfortun tely~ <br />,due to staff changes, this issue'has been uni'esolved. I would like to bring t:his issu to' <br />closure as quickly as possible. As you might guess, the loss of the use of these fun sluts <br />caus~d the Town some fmanciaJdistress. I do not feel as if we could meet the parit test <br />,now or in <tb:e foreseeable futurt: because of the numb~r of new water taps issued e. h <br />year. <br /> <br />As I mentioned in one of our earlier conversations, my objective is to free up as m ch <br />cash as possible. Accordingly~ I would like to discuss two specific options with yo . I <br />beli~ve they proyid~ a win-win solution. <br />. . <br /> <br />Option I <br /> <br />The Town of Erie would def~ase the Loan by purchasing goverrunent securities th t <br />would meet the existing debt service for the next 20 years and then pay off the bal ceo <br />The advantage for .the CWCa. would be receipt of the entire amount approximately 15 <br />years early. The advantage to the Town is the present value of the investments free up <br />cash that we need for other system improvements. <br /> <br />645 Holbrook. P.O. Box 750. Erie, Colorado, 805]6. Phone (303) 926-2700. F,IX (30:;) 926-270 <br />