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CliftonLarsonAllen LLP <br /> 8390 East Crescent Parkway,Suite 500 <br /> Greenwood Village,CO 80111 <br /> 303-779-5710(fax 303-779-0348 <br /> CliftonLarsonAllen CLAconnect.com <br /> March 5, 2015 <br /> Mayor and Board of Trustees <br /> Town of Bennett, Colorado <br /> Re: Parity Certificate Required by Section 8 (e) (ii) of the Loan Contract made on March <br /> 21, 2008 between the Colorado Water Conservation Board ("CWCB") and the Town of <br /> Bennett acting by and through its Water Activity Enterprise ("Town") <br /> Dear Mayor and Board of Trustees: <br /> The purpose of this report is to summarize the procedures we performed in order to issue a <br /> certificate required by the Town's Loan Contract with CWCB in connection with the Town's <br /> proposed new debt issuance. Pursuant to Section 8 (e) of the Loan Contract, the Town may <br /> issue parity debt only with the prior written approval of the CWCB, provided that: (i) the Town is <br /> in substantial compliance with all of the obligations of the Loan Contract, including but not <br /> limited to, being current on the annual payments, and in the accumulation of debt service <br /> reserve fund, and (ii) the Town provides to the CWCB a Parity Certificate from an independent <br /> certified public accountant certifying that, based on an analysis of the Town's revenues, for 12 <br /> consecutive months out of the 18 months immediately preceding the date of issuance of such <br /> parity debt, the Town's revenues are sufficient to pay its annual operating and maintenance <br /> expenses, the annual debt service on all outstanding debts having a lien on the pledged <br /> revenues (including the CWCB loan), the annual debt service on the proposed debt to be <br /> issued, and all required deposits to any reserve funds required by the CWCB Loan Contract or <br /> by the lenders of any other debts having a lien on the pledged revenues. This certification <br /> relates to the requirements of Section 8 (e) (ii) only. <br /> Specifically, we read the Loan Contract, the Town's audited financial statements for the year <br /> ended December 31, 2013, and the Town's unaudited financial statements for the year ended <br /> December 31, 2014. The following assumptions were used in our analysis: <br /> • The new debt will be issued on April 1, 2015. Therefore, using the Town's unaudited <br /> financial statements for the year ended December 31, 2014, will meet the requirement <br /> for the analysis to be made based on revenues for 12 consecutive months out of the 18 <br /> months immediately preceding the issuance of such parity debt. <br /> • Revenues, operations and maintenance expenses, and transfers-out to the General <br /> Fund were taken from the Town's unaudited financial statements for the year ended <br /> December 31, 2014. Annual debt service on existing debts was based on the <br /> amortization schedules reflected in the Town's audited financial statements for the year <br /> ended December 31, 2013. Required annual deposit to the debt service reserve fund for <br /> the existing CWCB loan was taken from the Loan Contract. <br />