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<br />~. <br /> <br />e <br /> <br />e <br /> <br />principal portion of contract C153740 and refinanced under the new contract for a <br />repayment term of 30 years at an interest rate of 5%. It was anticipated that the contract <br />for the new loan would be completed in time to payoff the $130,000 loan before the <br />balloon payment became due. <br /> <br />Due to scheduling of the project, the new contract has not been completed. The City and <br />the CWCB staff are in the process of negotiating the $955,000 contract that should be <br />completed in approximately six weeks. Once the $955,000 contract is completed, <br />$130,000 will be used to payoff the principal portion of Loan Contract C153740. At that <br />time, the City will also pay all interest accrued, in accordance with CWCB Policy No. 10, <br />adopted by the Board at the November 1997 meeting. <br /> <br />To avoid the loan becoming delinquent, the City has requested that the Board grant a <br />deferral of the loan payment in the amount of $136,175 due on Loan Contract C153740 <br />as of October 1,2000. <br /> <br />COLLATERAL REVISION. <br /> <br />The collateral recommended and approved by the Board for the $955,000 loan was a <br />security interest in the stream of income derived by the City's water enterprise from the <br />sale of water and a certificate of deposit in the amount of one annual payment. <br /> <br />In accordance with the CWCB Policy No.5, adopted by the Board at the September 1999 <br />meeting, the City requests that the requirements for the collateral on its $955,000 loan be <br />revised to a pledge of revenues backed by a rate covenant and annual financial reporting. <br /> <br />STAFF RECOMMENDATION <br /> <br />The staff recommends that the Board approve the City of Idaho Springs' following <br />requests: <br /> <br />(1) To defer the City's upcoming annual payment for Loan Contract C153740 until the <br />$955,000 loan contract is completed, or until May 1, 2001, whichever is sooner, at <br />which time the principal amount of $130,000 for Loan Contract C153740 will be repaid <br />with funds from the new contract and the City will pay the accrued interest. <br /> <br />(2) Accept a pledge of revenues backed by a rate covenant and annual financial reporting <br />as adequate security for the City's $955,000 loan from the Construction Fund. <br />