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<br />.. <br /> <br />ACTION <br /> <br />Concern No.1, - The Tabor Amendment- Attorney General Office has been in communication with <br />Sterling's City Attorney. The State was advised that the City did conduct an election regarding the <br />Tabor Amendment spending and taxing limitations. The City held this election on November 8, <br />1994. That ballot question was approved by a vote of2,297 in favor to 1,266 against. <br /> <br />The Attorney General's Office requested a City opinion as to whether or not the City does in fact <br />comply with the Tabor spending requirements as it relates to their CWCB Construction Fund loan <br />application. The City did submit opinion dated January 15,1999. <br /> <br />Following a legal review by the AG's Office, it was determined that the City does not fully comply <br />with spending restriction of the Tabor Amendment for their CWCB Construction Fund loan <br />application. The City must conduct another election in November 1999 for the full compliance to <br />Tabor. <br /> <br />For Concern No.2, - CWCB Public Works Fund- By letter dated January 21, 1999, the City of <br />Sterling has plague to create a fund or equally binding document which will secure the annual <br />payment for the CWCB loan. The City's drainage and flood control tax generates $285,000, <br />annually. These drainage and flood control dollars are received annually from a city sales tax with <br />no sunset provision. Twenty per cent of 1 % of the sales tax is set aside specifically for drainage <br />and flood controL The City's January 21, 1999 letter is attached. <br /> <br />The City's staff plan to be present at the January 1999 Board meeting and will make formal <br />statements regarding the Tabor amendment election schedule and the creation of a CWCB loan <br />fund. <br /> <br />RECOMMENDATION <br />The staff recommends an increase in the City of Sterling's authorization an amount of $685,000 for <br />a total Construction Fund loan of $1,235,000 be approved for the purpose of constructing the <br />proposed floodplain project. Staff recommends a 20-year term for the loan and the Municipal Low <br />Income lending rate for 1999 as may be approved by the Board at the November 1998 Board <br />Meeting. The Municipal Low-Income rate is based on MHI of $20,189. <br /> <br />It is further recommended as a condition of the loan that the City schedule a Tabor election in <br />November 1999; to create CWCB loan fund assurances and annual loan repayment funds; and <br />amends its project feasibility study in accordance to the CWCB Construction Fund Guidelines. <br /> <br />2 <br />