BOARD00322

• Board Meeting Date: 1/27/1999
• Description: CF Section - General and Financial Matters - Delinquent Payments
• 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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Bill Owens
Governor

MEMORANDUM

Greg E. Walcher
Executive Director, DNR

TO:

Colorado Water Conservation Board Members
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William P. Stanton, P.E.I/',<"' -
Chief, Project Planning and Construction Section

Peter H. Evans
Acting Director, eWeB

FROM:

DATE: January 15,1999

SUBJECT: Agenda Item lOb, January 27-28,1999, Board Meeting-
Water Project Construction Loan Program
General and Financial Matters, Delinquent Payments

Staff has identified 2 borrowers as being delinquent in making payments on Construction Fund
loans. We received a partial payment from Starkville and there is no change for Coon Creek.

. In 1982, the Town of Starkville in Las Animas County borrowed $200,000 at 2.00% interest
over 40 years for water distribution system improvements. Their annual payment is $7,312
due in June. Tbe town has had trouble making payments from the beginning, and now they
are six payments behind. In November 1997 the Board approved a request by for a deferment
of their 1997 payment. The town intends to repay the loan and passed an ordinance in late
1997 which raised water rates to cover expenses and debt service. On January 13, 1999 we
received a check for $2,000 which was credited towards principal of payment number 10
($133 remains due on principal). The restated balance of their loan is $163,881. CWCB staff
is having difficulty drafting an amendment to their contract to restructure the loan because of
a heavy workload and a higher priority placed on drafting contracts for new loans for projects
about to start construction.

. In 1989, the Coon Creek Reservoir and Ditch Company borrowed $55,000 at 5.00% interest
over 25 years to rehabilitate Coon Creek Reservoir Dams No. 1 and No.2 located in Mesa
County. The annual payment is $3,902.25 due in September. Payments from the beginning
have been typically 6 to 9 months late, and they are 2 payments behind schedule. They paid
$1,500 in July 1997, which was credited toward interest on their 1996 payment (number 6).
Then they paid $2,000 in January 1998 of which $1,069 was applied first to payoff interest
in 1996 and the remainder of $931 was applied towards principal in 1996. So the company
still owes $402 in principal on their 1996 payment. The balance of the loan is $47,564.

L\BOARDMEMVAN99\IOh - Deliquencies.doc

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