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<br />'~ <br /> <br />." <br /> <br />. <br /> <br />. <br /> <br />2) <br /> <br />The Board requested more information on the City's proposal to set aside funds in the <br />amount of two annual loan payments as collateral for the loan, specifically whether the City <br />can establish a separate account and assign that account to the CWCB. <br /> <br />ACTION <br /> <br />TABOR Issues. The Attorney General's Office and the City's attorney have discussed the <br />TABOR issues, The City held an election regarding TABOR's spending and taxing limitations on <br />November 8, 1994, The City's voters approved the ballot question by a vote of 2,297 in favor to <br />1,266 against, with the result that the City is not subject to TABOR's spending or excess revenue <br />limitations, <br /> <br />However, the election results did not exempt the City from TABOR's requirement of voter <br />approval for incurring multiple fiscal year obligations such as the CWCB loan. The City intends to <br />, ~ hold an election to obtain voter approval of the CWCB loan, including the $550,000 authorized by <br />the legislature in H,B, 98-1189, in November 1999. <br /> <br />The City is requesting authorization to use the loan funds to refinance the costs of the Project so it <br />can begin work on the Project this summer. This request entails amending H,B, 98-1189 to provide <br />that the $550,000 may be used to refinance Project costs. <br /> <br />Collateral. - - The City has proposed setting aside funds in the amount of two annual loan <br />payments into a separate account that it will assign to the CWCB as collateral for the loan. <br />Additionally, to secure repayment of the loan, the City will pledge revenues earmarked for drainage <br />and flood control that the City sets aside annually from a City sales tax (20% of 1% of the tax) with <br />no sunset provision, <br /> <br />The City's staff plans to attend the January 1999 Board meeting to answer any questions on this <br />application. <br /> <br />RECOMMENDATION <br />The staff recommends an increase in the City of Sterling's loan authorization in the amount of <br />$685,000 for a total Construction Fund loan of $1,235,000 to be used to fmance and/or refinance <br />the costs of the Pawnee Creek Flood Control Project. Staff recommends a 20-year term for the loan <br />and the Municipal Low Income lending rate for 1999, which is 3,5%, The Municipal Low-Income <br />rate is based on MIll of $20, 189. <br /> <br />As collateral for the loan, the City will pledge revenues derived from a sales tax that the City sets <br />aside for drainage and flood control, and will set aside funds in the amount of two annual loan <br />payments into a separate account that the City will assign to the CWCB, <br />Staff further recommends that, as conditions this loan approval, the Board require the City to hold a <br />TABOR election in November 1999 and obtain voter approval for the loan; and to amend its <br />project feasibility study in accordance with the CWCB Construction Fund Guidelines, <br /> <br />2 <br />