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. . . Colorado Water Conservation Board Department of Natural Resources 721 Centennial Building 1 31 3 Sherman Street Denver, Colorado 80203 Phone: 13031 866-3441 FAX: 13031866-4474 STATE OF COLORADO - Roy Romer Governor DRAFT lames S. Lochhead Executive Direcror, DNR Oaries C. Ule, RE. Director, eweB MEMORANDUM TO: Colorado Water Conservation Board Members WilIiamP. Stanton, P,E, ~~. Chief, Project Planning and Construction Section FROM: DATE: July 1, 1998 SUBJECT: Agenda Item 20b, July 13-14, 1998, Board Meeting- Water Project Construction Loan Program - General and Financial Matters Delinquent Payments Staff has identified 5 borrowers as being delinquent in making payments on Construction Fund loans, . In November 1997 the Board approved a request by the Town of Starkville for a deferment of their 1997 payment. The restated balance of their loan is $165,581. The town has passed an ordinance to raise the water rates to cover expenses and debt service. On May 18, 1998 the Town sent in a check for $1,000 which was credited to interest. CWCB staff is in the process of drafting an amendment to their contract. . In 1989, the Coon Creek Reservoir and Ditch Company borrowed $55,000 at 5,0% 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. Their first payment was due in September 1991. However, payments from the beginning were typically 6 to 9 months late, They paid $1,500 July 1997, which was credited toward interest on their 1996 payment, Then they paid $2,000 in January 1998 which, as instructed by accounting, was applied first to pay off interest in 1996 and then towards interest in 1997. Thus the company is delinquent by $1,470,81 for the principal on their 1996 payment, $1,289,34 remaining in interest on their 1997 payment and $1,544,35 for principal and on their 1997 payment. The balance due on the loan remains at $48,632,09, 1