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<br />. <br /> <br />. <br /> <br />. <br /> <br />,.. <br /> <br />. <br /> <br />STATE OF COLORA.DO <br /> <br />I)) <br /> <br />Colorado Water Conservation Board <br /> <br />Department of Natural Resources <br /> <br />721 Centennial Building <br />1313 Sherman Street <br />Denver, Colorado 80203 <br />Phone: (303) 866-3441 <br />FAX: (303) 866-4474 <br /> <br />Bill Owens <br />Governor <br /> <br />Greg E. Walcher <br />Executive Director, DNR <br /> <br />Peter H. Evans <br />Acting Director, CWCB <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />Colorado Water Conservation Board Members r;/; I <br /> <br />Bill Stanton, P.E., Chief, Project Planning and Construction Section~\' <br />Bill Green, P.E., Manager of Plannin?t'J3~ <br /> <br />January 25,1999 <br /> <br />FROM: <br /> <br />DATE: <br /> <br />SUBJECT: <br /> <br />Agenda Item lOb., January 27-28, 1999 Board Meeting- <br />Water Project Construction Loan Program - <br />General and Financial Matters - Town of Erie - Request for Parity <br /> <br />Introduction <br /> <br />The Town of Erie has requested that the CWCB consent to parity status for the Town's 1998 <br />water revenue bonds (Water Enterprise Revenue Refunding and Improvement Bonds, Series <br />1998). (See attachment for background on the CWCB parity debt policy). The CWCB's lien on <br />the Town's water revenues stems from a 1994 Construction Fund loan. Staffhas reviewed the <br />Town's financial condition and concluded that the Town does not meet the parity test that the <br />Board applies to such requests. The Town is requesting the CWCB to make an exception to its <br />parity test and consent to parity status for the 1998 Bonds. <br /> <br />Backeround <br /> <br />The Town of Erie and the Erie Water Department ("Town") entered into a loan contract with the <br />CWCB in March 1994 for $1,544,000 to finance the costs of the Southern Water Supply Project <br />(SWSP) of the Northern Water Colorado Conservancy District. The Town pledged revenues <br />from water charges and fees to repay the loan. Additionally, the Town conveyed a security <br />interest to the CWCB in an Allotment Contract with the SWSP Activity Enterprise for capacity <br />in the Carter Lake to Broomfield segment of the SWSP pipeline. <br /> <br />The Project was completed in June 1996, and the current loan balance is approximately <br />$1,492,000. The CWCB and the Town amended the contract on December 19,1997 to <br />acknowledge the Town's issuance of the Water Enterprise Bonds, Series 1997B ("1997 Bonds") <br />and the CWCB's consent to parity status for the 1997 Bonds. <br />