CT2016-2004 AOL

• Contract/PO #: CT2016-2004
• Contractor Name: Parkville Water District
• Contract Type: Grant/Loan Combo
• Loan Projects - Doc Type: Contract Documents

Colorado Water Conservation Board
Parkville Water District
January 12, 2016
Page 2
Contract and the Security Agreement, that the CWCB has all the requisite power and
authority to authorize, execute and deliver, and has duly authorized, executed and delivered
the Loan Contract and the Security Agreement, the Loan Documents constitute legal, valid
and binding obligations of the District enforceable in accordance with their respective terms.
4. The execution and delivery of the Loan Documents are not subject to
the limitations of Article X, Section 20 of the Colorado Constitution ("TABOR") because the
District constitutes an enterprise under TABOR as of the date hereof. The performance of the
obligations of the District under the Loan Documents is not subject to the limitations of
TABOR as long as the District continues to qualify as an enterprise under TABOR. If the
District ceases to qualify as an enterprise under TABOR, the Loan Documents will continue
to constitute legal, valid and binding obligations of the District enforceable in accordance
with their respective terms subject to the revenue and spending limitations of TABOR;
provided, however, that if the District at any time ceases to qualify as an enterprise under
TABOR, (a) the District may impose any increased fees, rates and charges of the System
without voter approval; (b) all revenues of the District used to pay Loan Payments are to be
included in the District fiscal year spending limit under Section 7(d) of TABOR, except that
creation of bonded debt increases fiscal year spending by the amount of debt service so
funded and debt service changes and reductions are exceptions to, and not part of, the District
revenue and spending base and limits; and (c) if the District is required to reduce spending in
order to comply with its fiscal year spending limit under Section 7(b) of TABOR, the District
will first be required to reduce spending for purposes for which it does not have an obligation
under law or by contract prior to reducing spending required to comply with the other
covenants contained in the Loan Documents.
The opinions expressed in this opinion letter are subject to the following:
The obligations of the District pursuant to the Loan Documents are limited by
bankruptcy, insolvency, reorganization, moratorium, and other similar laws affecting
creditors' rights generally, and by equitable principles, whether considered at law or in equity.
We are opining only upon those matters set forth herein, and we are not
passing upon any federal or state tax consequences arising from the receipt or accrual of
interest on or the ownership or disposition of the Loan Documents.
This opinion letter is issued as of the date hereof and we assume no obligation
to revise or supplement this opinion letter to reflect any facts or circumstances that may
hereafter come to our attention or changes in law that may hereafter occur.