C150252 Apporval letter - Laserfiche WebLink

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, , ~ Henrylyn Irrigation District , ' July 11-12, 2007 Agenda Item 15a Col/atera/: As security for the loan, the HID will pledge its annual assessment levy revenues, backed by an assessment covenant. Also, the HID will pledge additional collateral in the form of 10% interest in Horse Creek Reservoir and 10% interest in Prospect Reservoir. This is in compliance with CWCB Loan Policy #5 (Collateral). Recommendation 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 of a 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 Bollers, President, Henrylyn Irrigation District Duane Smith, P.E., Smith Geotechnical Amy Stengel, AGO Attachment Action Taken by the CWCB on Julv 12, 2007 The CWCB approved the Staff Recommendation. Page 6 of 6