BOARD00956 - Laserfiche WebLink

Home Browse Search

, . . . ... Colorado Water Conservation Board Department of Natural Resources 13' 3 Sherman Street Denver, Colorado 80203 Phone, (3031866-3441 FAX, (303) 866-4474 STATE OF COLORADO . Bill Owens Governor MEMORANDUM Greg E. Walcher Executive Director, DNR Peter H. Evans Director, eweB TO: Colorado Water Conservation Board Members FROM: Mike Sedet, P.E. d'/ r Chief, Project PI~and Construction Section DATE: May 17, 1999 SUBJECT: Agenda Item 20c, May 24-45, 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 of maturity of the contract, an assumption that needs to be verified for each contract. The Board's late payment policy, adopted May 12, 1998, is that payments on all new contracts will be considered late after 15 days. It was suggested that after 15 days, a late fee of 10% of the annual payment will be due. This policy does not apply retroactively to contract made prior to March 1998. A histogram is attached showing the distribution of payments in 10-day intervals. The results show over 5 of 113 payments (5%) were 15 or more days late and 9 of 113 payments (8%) were more than 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 of $7,312 is 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 the Town 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 March 4, 1999 we received a check for $1,000, which will be credited to interest. The restated balance of their loan is $163,881. eWCB staff is behind schedule in drafting an amendment to Starkville's contract to restructure the loan because of higher priorities placed on drafting contracts for new loans for projects about to start construction. 1