BOARD00737

• Board Meeting Date: 3/29/1999
• Description: CF Section - General and Financial Matters - Delinquent Payments
• Board Meetings - Doc Type: Memo

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STATE OF COLORADO

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Colorado Water Conservation Board
Department pf Natural Resources
1313 Sherman Street
Denver, Colorado 80203
Phone, 13031866-3441
FAX, 13031 866-4474

Bill Owens
Governor

MEMORANDUM

CregE. Walcher
Executive Director, DNR
Peter H. Evans
Director, C'vVCB

TO:

Colorado Water Conservation Board Members

William P. Stanton, P.E. ~'
Chief, Project Plarming and Construction Section
Lisa Fox, CWCB Accountant

FROM:

DATE:

March 26, 1999

SUBJECT:

Agenda Item 23c, March 29-30, 1999, Board Meeting -
Water Project Construction Loan Program
General and Financial Matters, Delinquent Payments

Staff has analyzed all payments received to date in FY99 to make a preliminary determination of
when payments are received relative to their due date. The payment due date was assumed to be the
same date ofmaturlty of the contract, an assumption that needs to verified for each contract, (some
contracts may not specify a specific date).

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The Board's late payment policy, adopted May 12, 1998, is that payments on all new contracts will
be considered late after 15 days. This policy does not apply retroactively to contract made prior to
March 1998.

A histogram is attached showing the distribution of payments in 1 D-day intervals. The results show
over 12 of95 payments (13%) were 15 or more days late and 11 of95 payments (12%) were more
that 30 days late.

Staff has identified 2 borrowers as being seriously delinquent in making payments on Construction
Fund loans. There has been no change in the delinquent status for Starkville or 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. The 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

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