BOARD00193

• Board Meeting Date: 5/11/1998
• Description: CF Section - Changes in Existing Loans - Chatfield South Water District
• Board Meetings - Doc Type: Memo

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Colorado Water Conservation Board
Department of Natural Resources
721 Centennial Building
1313 Sherman Street
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]

STATE OF COLORADO

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Roy Romer
Governor

MEMORANDUM

James S. Lochhead
Executive Director, DNR

DariesC. lile, RE.
Director, eWeB

Peter H. Evans
Acting Director, CWCB

TO:

Colorado Water Conservation Board Members

FROM: Peter Evans, Bill Stanton, and John Van Sciver

DATE: April 29, 1998

SUBJECT: Agenda Item 15b. May 11-12, 1998, Board Meeting--
Chatfield South Water District

Recommendation to revise loan terms for the exisling $500,000 authorization to
allow the District to borrow 100% of the cost of the water purchased,

BACKGROUND

In November 1997, the CWCB recommended a loan in amount of $500,000 to the Chatfield
South Water District to purchase of water rights for a new domestic water system for the area
south of Chatfield Reservoir. That loan is included in the Construction Fund Bill (HB 98-1189)
that has been approved by the General Assembly. The CWCB specified that the loan could be
used to fund up to 75 % of the cost of the water rights purchased, The memo, as approved by the
Board, is attached,

The District's budget indicates that the cost to construct and buy water for Phase I of the new
water system will be $1,156,000. Phase I will serve 100 customers and the District plans to use
$400,000 of the CWCB loan authorization, and $741,000 from the Colorado Water Resources
and Power Development Authority to pay for it. For Phase I, CWCB financing will represent
only 35 % of the total project cost. Residents will pay an additional $210,000 systems fee directly
to Denver to establish service, CWCB financing represents a relatively small part of the total
project cost. For this reason the District is requesting that it be allowed to use the CWCB loan to
finance up to 100% (instead of 75 %) of the cost of the water purchased,

DISCUSSION

The CWCB established the 75% requirement for the District's loan, This occurred in November
1997 as part of the loan review and approval process, The CWCB may revise this requirement
without affecting the legislation.