PROJC02181 - Laserfiche WebLink

Home Browse Search

CWCB Construction Fund Loan Application from its reserves and 2008 general fund revenues; however, paying the full $450,000.00 to $500,000.00 of Center's share of the JTR project budget will leave it with minimal reserves. The CWCB loan will be used to repay Center of Colorado's costs for the JTR and to replenish its reserves spent on construction of the Project. A $500,000 loan from the CWCB at 3.5% interest amortized over a 10 year term would require annual payments of principal and interest of $60,120.68. Utilizing 2008 revenues as a benchmark, Center will collect approximately $400,000.00 in general fund revenues each year during the loan term, of which approximately $92,407.00 would be allocated to payment of the District's long term loans (including the note to the Bargas Trusts) and including the proposed CWCB loan. The loan from Park County will be paid in 2009 and accrues no interest. Thus, less than 25% of Center of Colorado's future revenues would be committed to all of the district's debt service, including the CWCB loan. Water Rights. The Center of Colorado does not need to obtain any new water rights in order to make full use of the JTR and the excess capacity in the JTR. Center already owns and has adjudicated the Randall and Sessions Ditches, which changed water rights will be stored in the JTR. The Randall and Sessions ditches are senior water rights that historically diverted from Michigan Creek. When in priority, Center will store fully consumable Randall and Sessions Ditch water rights in the JTR. The Randall and Sessions Ditches were adjudicated for an average annual consumptive use yield of 706 AF per year, of which Center controls the first 200 AF. Thus, Center intends to fully utilize its capacity and will do so commencing in 2009 following completion of the JTR in the fourth quarter of 2008. Institutional considerations. The regulatory permits and approvals are attached in Appendices E-1 through E-4. Also attached are copies of the various contracts with Centennial regarding the JTR, including the following: ^ May, 2003 Agreement re: lease of the Randall and Sessions Ditch water rights - (Appendix D-1). ^ Construction Account Agreement with Centennial re: construction of the JTR - (Appendix D-2) ^ Construction Management Agreement with Centennial re: construction of the JTR- (Appendix D-3). Project alternatives. The JTR is an off-channel facility constructed adjacent to Michigan Creek. The JTR is required in order to implement the return flow obligations required in Case No. 2005CW111 (See Appendix B). The historic return flows from the Randall and Sessions Ditches accrued to Michigan Creek at the location of the JTR. Given the return flow requirements of the 2005CW111 Decree, and the obligation to make replacement of non-irrigation season return flows at the historic location (in part to meet the CWCB's minimum stream flow requirements on Michigan and Tarryall Creeks), there are no viable alternative locations for the JTR. 10