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<br />will be undelWay. The table demonstrates acceptable financial ratios during the period of <br />debt retirement. <br /> <br />The City submitted a ten-year projection of revenues and expenditures. That projection <br />indicates revenues will be more than adequate to cover operating expenses plus debt <br />servIce. <br /> <br />Recommendation <br /> <br />Staff recommends a Construction Fund loan of up to $420,000 to the City of Fountain, <br />acting by and through its water enterprise fund, for the rehabilitation of Keeton Reservoir <br />as described in this memo. The loan would be for a term often years at the Municipal <br />Low-Income lending rate (adjusted for a ten-year term) as may be adopted by the Board <br />in November 2001. As security for the loan, the City's water enterprise fund will pledge <br />water system revenues backed by a rate covenant and annual financial reporting. <br /> <br />Staff further recommends the following conditions for loan approval prior to entering into <br />a loan contract between the CWCB and the City: <br /> <br />1. The City will submit a completed feasibility study acceptable to the CWCB staff. <br /> <br />2. The State Engineer's Office and the CWCB staff must approve the design of the <br />proj ect. <br /> <br />3. All required permits will be obtained. <br /> <br />4. The City Council and the board of the water enterprise fund will adopt resolutions <br />approving the loan and the pledge of revenues. <br /> <br />Attachment <br /> <br />Cc: Jim McGrady, City of Fountain <br />Jim Ferentchak:, W.W. Wheeler <br />Garrett Jackson, SEO <br />Linda Bassi, AGO <br /> <br />4 <br />