CT2015-040 Increase Financials - Laserfiche WebLink

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PENROSE WATER DISTRICT 340 Grant Street Penrose,CO 81240 acres is being negotiated and is expected to close by July of 2013. Proceeds from the sale of the real estate will be retained by the District in order to replace depletions of cash-on-hand used to pay of the original debt. The District bought the McEnulty Ranch with capital savings. The water was removed from the McEnulty and the associated real estate was sold to a private party in 2009. In December of 2010 the District closed on a Colorado Water Conservation Board (CWCB) 30- year, 3.25%, loan for$8,844,570. That loan is issued to finance 90%of the purchase of the water rights, construction of a river diversion and raw water pipeline, and the purchase or construction of storage. The District is responsible for the remaining 10% cost of the Project. Additional funding for the project is by way of a $500,000.00 grant from the Department of Local Affairs awarded in 2007. In 2011 the District took a loan draw of $1.26M for the raw water, and $2.25M for storage purchased in Brush Hollow Reservoir from Beaver Park Water,Inc. In 2012, the District purchased 100 acres of property from Holcim US, Inc. south of Penrose, along the north side of the Arkansas River, for locating a well field to divert the Pleasant Valley Ditch water rights. The development of the well field is underway with the engagement of engineering in April 2013. The well field is projected to be fully developed for production by September 2013. In April 2013, the District hired an engineering firm to design the Arkansas-Penrose Raw Water Pipeline to convey water to storage at B.H. Reservoir and the water treatment plant. The pipeline is expected to be completed and in service by the 3rd quarter of 2014. Several budgetary and economic requirements set forth by CWCB in order to secure the loan are worthy of note and as follows: — the District is utilizing the Enterprise to receive and expend the loan money to build the project. — beginning in 2007,the District extracted Enterprise activities from the Penrose Water District budget and now presents enterprise activities as a budget separate from the main body of the District's budget. — to generate revenues necessary to meet the debt service on the CWCB loan, in 2006 the District Board passed a resolution increasing the base-rate charges for each equivalent residential unit (eru) by $3.00 per month each January of 2007, 2008 and 2009. After re-assessment of the projected debt service in late 2012,the board raised the base rate an additional $3.50, effective January of 2013. In 2005 the Board established the current tap fee of$12,000.00/eru. In 2012 the District issued 1 water tap and had 1,736 taps on system at December 31St. With the exception of the completion 5