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from any other available funds of the enterprise pursuant to Title 37,Article 45.1,C.K.S.,and Article <br /> X, Section 20,Colorado Constitution; and <br /> WHEREAS, the cost of the Project is estimated to be$6,821,000 including design, <br /> engineering,legal,financing and administrative costs relating thereto,and any other costs incidental <br /> thereto; and <br /> WHEREAS, the Council has determined that in order to finance the Project, it is <br /> necessary and advisable and in the best interests of the City to enter into a loan contract(the"Loan <br /> Contract") and a security agreement (the "Security Agreement") with the Colorado Water <br /> Conservation Board("CWCB"),a body corporate and political subdivision of the State of Colorado, <br /> pursuant to which the CWCB will loan the City $6,889,210. which includes a one percent loan <br /> origination fee, pursuant to the Loan Contract to finance the Project; and <br /> WHEREAS, the City's repayment obligations under the Loan Contract shall be <br /> evidenced by a promissory note(the"Promissory Note")to be executed and delivered by the City to <br /> the CWCB; and <br /> WHEREAS, the Promissory Note, the Loan Contract and the Security Agreement <br /> (collectively,the"Financing Documents")may be approved by the Council acting in its enterprise <br /> capacity without an election pursuant to C.R.S. §§ 37-45.1-104 to106; and <br /> WHEREAS,the City's repayment obligations under the Financing Documents shall <br /> be special, limited obligations payable solely from and secured by an irrevocable lien(but not an <br /> exclusive such lien)on the net revenues of the System,as hereinafter defined,shall not constitute a <br /> debt,an indebtedness or a multiple fiscal year debt or other financial obligation of the City within the <br /> meaning of any constitutional or statutory provision or limitation and shall not be considered or held <br /> to be general obligations of the City or the Enterprise; and <br /> WHEREAS,the City has previously issued its City of Walsenburg,Colorado,Water <br /> and Sewer Revenue Refunding Bonds,Series 2017(the"the"Prior Bonds"),which Prior Bonds are <br /> secured by a pledge of the Net Revenues of the System; and <br /> WHEREAS, except for the Prior Bonds,the City has not pledged nor hypothecated <br /> the Net Revenues derived or to be derived from the operation of the System,or any part thereof,to <br /> the payment of any bonds or for any other purpose,with the result that the Net Revenue may now be <br /> pledged lawfully and irrevocably to the payment of the Financing Documents; and <br /> 2 <br />