BOARD00728

• Board Meeting Date: 1/24/2001
• Description: CF Section - CWCB Construction Fund New Loans - Colo Division of Parks and Outdoor Recreation - Jackson Lake Dam Rehabilitation
• Board Meetings - Doc Type: Memo

<50%

50-100%

4.0%

., 18
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to $7.00 which is also considered acceptable. As collateral for the loan, the Company i
offering a pledge of revenues and shares of stock in the Company with an estimated va
of $1.0 million.

Jackson Lake Reservoir and Irrigation Co. Financial Analysis

Weak
<100%
<100%

A vera e
100-120 %
100..125%

$10-$20

Stron 1997-1999 Av .
>120% 101%
>125% N/A
>100% 23 %
<$10 $3.44

With Loan
198%
110%

$7.00

Staff did not conduct the type of financial analysis set forth above for the loan requeste
by Parks. The financial feasibility of the Parks' loan is based upon the collateral offere
which is the balance in the special account at the State Treasurer's Office and the pledg
of any and all other revenues to cover loan payments over the term of the loan.

The Wheeler report included an economic feasibility analysis of the proposed project.
Using both agricultural and recreational benefits, the report indicated a benefit/cost ratio
of about 30 (annual benefits may be about 30 times greater than annual costs).

Conclusion

.

The loan to the Division of Parks and Outdoor Recreation (State Parks) presents a new
challenge for the Board. We have not been asked to loan funds to other state agencies to
repair water resource infrastructure projects and have no policy that expressly addresses
this situation.

Given the facts:
· State Parks and the Jackson Lake ReserVoir and Irrigation Company have been
working together to rehabilitate the dam at Jackson Lake;
· The Jackson Lake Reservoir and Irrigation Company has re-authorized its $1 million
dam repair but cannot afford to borrow the entire amount necessary to return the dam
to a safe condition; .
· State Parks cannot afford to complete its agreement with the reservoir company
without this loan;
· State Parks is a another DNR agency;
· State Parks is establishing a $900,000 account with the state treasurer to finance its
loan repayment obligation;
· Due to General Fund constraints imposed by voters and constraints on GOCO funds
caused by obligating future revenues for land' acquisition projects, State Parks would
be forced to forego planned capital constructipn project without the loan;
· State parks are enjoyed by millions of Coloradoans statewide; therefore,

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