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Center of Colorado Water Conservancy District Agenda Item 29d May 9,2014(Updated May 23,2014) Page 6 of 7 Contracting: In anticipation of a multi-year and multi-phased Project, CWCB may enter into multiple contracts under the approved loan limit. This will put the District into repayment on completed portions of the Project and allow CWCB to best utilize its loan funds. CWCB will enter into all contracts no sooner than September 1, 2014. In recognition of the long time of performance for Contracts 2 and 3, interest accrued prior to Project completion shall be paid annually unless otherwise approved by CWCB. CWCB will disburse loan funds at a rate of no greater than 90%of Project Cost, up to the approved loan limit. Because the District is only requesting funds for approximately 65%of its Project cost, it is projected the debt limit of$600,000 will be reached in Contract 2, potentially eliminating the need for Contract 3. The breakdown of the contract components are listed in Table 4. TABLE 4: CONTRACTING SUMMARY Time of Project Estimated Contract Performance Cost Contract Amount Project Activity (Not Incl.Service Fee) 1 1 Year $104,000 $93,700 Cost of storage Engineering,recreation facilities construction, 2 5 Years $598,000 $506,300 on-site mitigation,off-site mitigation, mitigation monitoring 3 13 Years _ $229,000 $0 Off-site mitigation,mitigation monitoring Creditworthiness: The District has $659,144 in existing debt, consisting of two CWCB loans as shown in Table 5. These two loans are current and in good standing. TABLE 5: EXISTING DEBT Lender Original Current Annual Maturity Collateral Balance Balance Payment Date - CWCB $454,500 $291,204 $54,650 2019 Pledge of Tax Revenues (C150276) CWCB $404,000 $367,940 $46,161 2023 Pledge of Tax Revenues (C150335) Total $659,144 $100,811 The first payment for loan C150335 was made in 2014. Thus,the loan debt service is not included in the "Past 3 Years"column of Table 6. In 2013, the District paid off a large debt which carried a debt service of approximately $225,000. That debt had contributed to revenues of the District due to a cost share agreement with another water supplier. With the debt paid off, the District will no longer be in receipt of that revenue source.