C150122 Approval Letter 2 - Laserfiche WebLink

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Central Weld County Water District - Proposed Dry Creek Reservoir November 25-26, 2002 . Agenda Item 20g Permitting - Preliminary environmental assessments have been completed. There are several wildlife and plant issues to be addressed, but none that will prevent construction permitting. Initial archaeological assessment has been conducted and has identified several sites of significance within one mile of the site. Additional on-site assessment will be required before construction to determine appropriate mitigation. The reservoir development will require a Corps of Engineers 404 Permit. In order to comply with Department of Wildlife requirements covered by the 404 permit, a depletion analysis will qe necessary to determine effects of the reservoir on the South Platte River. No significant depletion is expected. The project will be subject to review for special use by Larimer County. Based on conversations between L TWD and Larimer County, no issues have been identified that would prevent development of the reservoir. Property issues are currently being addressed. A total of 23 properties are expected to be affected, only four of which are expected to have to be purchased in their entirety. Financial Analvsis The total estimated cost of the project is $10,500,000 in a 50/50 partnership with the L TWD, with each entity borrowing $3,937,500 from the CWCS. The total loan will be for 75% of the estimated project cost. The District qualifies for a blended Municipal Middle/High Income Interest Rate. Staff is recommending a 20-year maximum amount of $3,937,500 at an interest rate of 4.15% per year. The District has budgeted the $1,312,500,25 percent local match, needed for their portion of the project, and the money is in place in reserves for that purpose. The current water rates are sufficient to support the loan payment, and no rate increases are necessary to complete this project. Alternative financing sources: The District did consider bonding for this project but opted to pursue funding through CWCS because of more favorable lending rates. Table 1 is a summary of the financial aspects of the project. A CWCS Construction Loan of $3,937,500 would have an annual payment of $322,948 (including the 10% reserve requirement) at the loan terms of 4.15% per year for 20 years. Table 1. Financial Summary $5,250,000 40,000 9500 $3,937,500 $322,948 $21.50 $2.83 e) $124.21 Creditworthiness: The District currently has two revenue bonds, one with US SanCorp Piper Jaffray, with a remaining amount of $2,455,000 maturing in 2007, and one with the Colorado Water Resources and Power Development Authority, with a remaining amount of $1,098,410 maturing in 2012. Annual payments on both bonds total $625,570. The District is in compliance with the covenants of the bond resolutions pertaining to revenues and expenses. CWCS would require parity of pledged water'revenues with these bonds. Page 4 of 7