C153701 PIF Contract

• Contract/PO #: C153701
• Contractor Name: Fort Morgan, City of
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

ilo III
COVERAGE CERTIFICATE
PA )
In connection with the proposed iss e bifli of
Fort Morgan, Colorado, Water Works and Distrib 1, , dated
erpris (the
;; a �
"Enterprise") of its Water Revenue Bonds, dDecember 16, 1997, in the aggregate principal amou` t
It 0
(the "Bonds") , the undersigned hereby certifies that:
1. All capitalized terms herein not otherwise defined
have the meanings provided in Exhibit F to the Loan Agreement,
dated as of April 1, 1994 , between the Enterprise and the Colorado
Water Resources and Power Development Authority.
2 . Attached as Exhibit A hereto is the water rate
schedule for the City of Fort Morgan, Colorado (the "City") ,
will become effective on January 1, 1998, which has been finally
approved by the City Council of the City.
3 . Attached as Exhibits B and C hereto are the water
rate schedules for the City that are proposed to become effective
on January 1, 1999, and January 1, 2000, respectively, which have
been preliminarily approved by the City Council of the City subject
to change.
4 . Assuming that the water rate schedules set forth in
Exhibit C had been in effect for a period commencing October 1,
1996, and ending on September 30, 1997 (12 consecutive months out
preceding December, 1997) , the revenues of the
18 months g
of the 1 P
System (exclusive of connection fees) after paying the expenses of
operating and maintaining the System during such period and the
projected increased expenses of operating and maintaining the
System in the year 2000, would have been $2 ,477, 537, which is
greater than $2 , 368, 007, the maximum annual debt service of all
outstanding obligations of the Enterprise or the City having a lien
on the Pledged Property on a parity with or senior to the lien
thereon of the Loan Contract and Promissory Note, dated August 7,
1995, between the Colorado Water Conservation Board and the City
and the Enterprise, the Governmental Agency Bond, the Bonds and the
Reimbursement Agreement, dated December 16, 1997, between State
Street Bank and Trust Company and the Enterprise (assuming for this
purpose that the Bonds bear interest at the fixed rate of 4 . 50%,
the maximum interest rate under the Rate Cap Agreement, dated
December 16, 1997 , between Morgan Guaranty Trust Company of New
York and the Enterprise) , the governmental agency bond proposed to
be issued to the Colorado Water Resources and Power Development
Authority, the loan contract and promissory note proposed to be
executed and delivered to the Colorado Water Conservation Board and
the water revenue bond proposed to be issued to the United States
of America - Rural Development (assuming for this purpose that said
Proposed obligations are issued or executed and delivered on the
Attachment B to Loan Contract Amendment No. 1