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<br />.Colorado Water Conservation Board <br /> <br />Department of Natural Resources <br /> <br />721 Slale Centennial Building <br />1313 Sherman Street <br />Denver, Colorado 80203 <br />Phone (303) 866-3441, <br />FAX (303) 866-4474 <br /> <br />STATE OF COLORADO <br /> <br />o <br /> <br />i~ <br /> <br />Roy Romer <br />Governor <br /> <br />MEMORANDUM <br /> <br />lames S, Lochhead <br />Executive Director, DNR <br /> <br />TO: <br /> <br />Colorado Water Conservation Board Members <br /> <br />William p, Stanton, P,E. Wy5. <br />Chief, Project Planning and Construction Section <br /> <br />Daries C. Lile, P,E, <br />Director. CWCB <br /> <br />FROM: <br /> <br />DATE: September 11, 1998 <br /> <br />SUBJECT: Agenda Item 16b, September 21-22, 1998, Board Meeting- <br />Water Project Construction Loan Program - General and Financial Matters <br />Delinquent Payments <br /> <br />Staff has identified 2 borrowers as being delinquent in making payments on Construction Fund <br />loans. <br /> <br />. <br /> <br />· In 1982, the Town of Starkville in Las Animas County borrowed $200,000 at 2,00% interest <br />over 40 years for water distribution system improvements, Their annual payment is $7,312 <br />due in June, The town has had trouble making payments from the beginning, and now they <br />are six payments behind, In November 1997 the Board approved a request by for a deferment <br />of their 1997 payment. The town intends to repay the loan and passed an ordinance in late <br />1997 to raise the water rates to cover expenses and debt service, Their latest installment <br />payment of $1,000 was received on August 24, 1998 and was credited towards interest of <br />payment number 10 for which they still owe $176 in interest and $3,956 in principaL The <br />restated balance of their loan is $167,705, CWCB staff are in the process of drafting an <br />amendment to their contract to restructure the loan, <br /> <br />· In 1989, the Coon Creek Reservoir and Ditch Company borrowed $55,000 at 5,00% interest <br />over 25 years to rehabilitate Coon Creek Reservoir Dams No, 1 and No.2 located in Mesa <br />County. The annual payment is $3,902,25 due in September. Payments from the beginning <br />have been typically 6 to 9 months late, and they are 2 payments behind schedule, They paid <br />$1,500 in July 1997, which was credited toward interest on their 1996 payment (number 6). <br />. Then they paid $2,000 in January 1998 of which $1,069 was applied first to payoff interest <br />in 1996 and the remainder of $931 was applied towards principal in 1996, So the company <br />stilI owes $402 in principal on their 1996 payment. The balance of the loan is $47,564. <br /> <br />. <br /> <br />L:\BOARDMEM\SEPT98\16B,DOC <br /> <br />1 <br /> <br />- <br />