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I I I I I I I I I I I I I I I I I I I market, the Larimer County General Fund, or a loan from another governmental entity. Because of its small size, and the fact that the Larimer County Dry Creek Stormwater Utility will not have a history of operations and collections, selling municipal bonds on the private municipal bond market would be very difficult, if not possible. The Larimer County General Fund does not have sufficient resources to.make a loan of the size needed for the proposed project. The West Vine Stormwater Utility previously borrowed $300,000 from the General Fund for the Hollywood Irish Project, and additional borrowing from the General fund is not possible. A loan from a governmental entity is the only course available. For that reason, this request is being made to the Water Conservation Board. It is the policy of the Colorado Water Conservation Board to lend 75% or less of the cost of a given project. Using a total project cost of$5.4 million, a loan could be made for an amount not exceeding $3.9 million. Larimer County therefore proposes to borrow $3.9 million from the Water Conservation Board to be repaid over a period of 30 years at an interest rate of 4 ~ percent. The annual debt service on the loan of $3.9 million will be $239,421 over a thirty year period at an interest rate of 4 ~ percent per annum. Of this amount, the amount representing the City's portion of the debt service, $85,946, will be paid by the City to the County. The remaining $153,475, or $12,790 per month will be paid by the Larimer County Dry Creek Stormwater Utility. The County will then pay the State the annual debt service amount of$239,421. The remaining cost oftheproject, $1.437 million, will be paid by the City of Fort Collins from other sources of funding. See Appendix ii, letter from City Manager of Fort Collins. Financial Projections for the Proposed Stormwater Utility Stormwater utilities within Colorado counties have been given the statutory authority to issue debt as may be required to raise money for improvements. Stormwater utilities may issue municipal revenue bonds or negotiate loans as needed to finance improvements. Due to their status as an enterprise, the Colorado Constitution under Article X does not require an election for county utility debt. An analysis was conducted of properties within the Local Basin Service Area of the utility. There are 400 commercial properties, and about 1,001 residential properties in the Local Basin. On a monthly basis, the commercial properties would pay an average of $60.00, totaling $24,000, and the residential properties would pay an average of$11.00, totaling $11,011. Table 3 is a detailed year by year projection of the finances of the proposed Larimer County Dry Creek Stormwater Utility over thirty two years. This analysis shows that beginning stormwater utility revenue would be sufficient to support principal and interest payments on a debt of $3,900,000. It also shows thatthe fees required to support debt service and operations of the Utility will decline in later years as more properties come on line and pay system investment fees and monthly service fees. By resolution of the Board of County Commissioners, Larimer County charges an administrative fee of five percent of all public works enterprise collections to pay for miscellaneous expenses 23