15a

• Board Meeting Date: 7/11/2007
• Description: CF Section- New Project Loans - Henrylyn Irrigation District - Horse Creek Reservoir and Prospect Reservoir Rehabilitation
• Board Meetings - Doc Type: Memo

Henrylyn Irrigation District Agenda Item 15a
July 11-12, 2007

10% interest in Horse Creek Reservoir and 10% interest in Prospect Reservoir. This is in
compliance with CWCB Loan Policy #5 (Collateral).

Recom mendation

Staff recommends a loan not to exceed $2,184,327 ($2,162,700 for project costs and $21,627 for
the 1 % Loan Service Fee in accordance with CWCB Loan Policy #16), to the Henrylyn Irrigation
District from the Severance Tax Trust Fund Perpetual Base Account, to repair the outlet works and
add toe drains at Horse Creek Reservoir, and repair the outlet works at Prospect Reservoir. The
recommended terms of the loan are 30 years at 2.25% per annum. Security for the loan will be a
pledge of Henrylyn Irrigation District annual assessment levy revenues, backed by an assessment
covenant, and a 10% interest in Horse Creek Reservoir and a 10% interest in Prospect Reservoir.

Staff further recommends that final approval of the loan be conditioned upon all other standard
contracting provisions of the CWCB. Further, staff recommends the following approval conditions:

1, The authority to assume the proposed indebtedness, shall be approved by the HID electors
in accordance with the applicable provisions of the Irrigation District Law of 1905, C.R.S. 37-
41-113(4) and C.R.S. 37-41-117), prior to execution ofa State contract.

2, Reserve Fund - Prior to execution of the State Contract, the Company shall provide CWCB
with evidence that the debt reserve fund of $99,915 has been established.

cc: Mr. Ken Boilers, President, Henrylyn Irrigation District
Duane Smith, P.E., Smith Geotechnical
Amy Stengel, AGO

Attachment

Page 6 of 6