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Security for the loan will be a pledge of general revenues received from taxes, as authorized by the District's November 4, 2003 election, and the election to be held in May of 2008 to increase the District's maximum indebtedness from $3,000,000 to $3,890,000. The CWCB will require parity for this lien with any existing debt and the CWR&PDA loan. This is in compliance with CWCB Loan Policy #5 (Collateral). In accordance with CWCB Loan Policy #8 (Purchase of Water Rights), a written appraisal or opinion of value from a qualified water rights appraiser supporting the purchase price must be submitted prior to disbursal of CWCB loan funds for water rights purchases. Staff Recommendation Staff recommends that the Board approve an increase of $757,500 ($750,000 for project costs and $7,500 for the 1% loan origination fee) to the Pinewood Springs Water District, from the Severance Tax Trust Fund Perpetual Base Account, at their cui~-ent interest rate of 4.0% for 30-years. The District's total amended loan amount will be $2,811,689 ($2,783,850 for project costs and $27,839 for the 1% Loan Service Fee) to construct a new storage reservoir, pump station and raw water pipeline, raw water infiltration gallery modifications, and to purchase additional water rights. Security for the loan shall be collateral in compliance with CWCB Loan Policy No. 5. 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 condition: 1. The proceeds from the sale of any water rights purchased with this loan approval shall be used to reduce the outstanding balance of District's loan with the CWCB. 2. The loan for the water rights portion of the project is contingent on the ability of the District to acquire the water rights, along with the successful completion of applicable procedures for joining the Northern Colorado Water Conservancy District. An election by the District to obtain voter approval to increase the District's level of indebtedness from $3,000,000 to $3,890,000 for the purposes of financing improvements to the District's domestic water system. cc: Mr. Mark Upton, Vice President, Pinewood Springs Water District Vaughn McWilliams, CWCB Amy Stengel, CWCB Attachment 6 Flood Protection • Water Project Planning and Financing • Stream and Lake Protection Water Supply Protection • Conservation Plaxu~ing