BOARD01405

• Board Meeting Date: 1/24/2001
• Description: CF Section - Columbine Ranches Prperty Owners Association Loan Increase
• Board Meetings - Doc Type: Memo

181
~ Columbine Ranches POA Agenda lIem 8a.
Janual)' 24-25, 2001
~.
The Barr Lake share purchase closed December 28, 2000. The Association used a
. portion of the original CWCB loan ($305,250) to pay for 75% of this purchase.
The municipal return flow water purchase is under negotiation at this time, but is
tentatively scheduled to close in early summer 2001, at which time the Association will
need the additional loan funds.
Selected Alternative 3 also includes a one.time engineering cost of $7,000 to evaluate
the consumptive use of the shares to be purchased,
Financial Analvsis
The total estimated cost of the project (water rights purchase and engineering) is '
$532,000. Staff is requesting that the Board recommend a new loan amount of
$399,000, which is 75 percent of the new cost estimate. (This represents an increase in
the loan amount of $93,750.) The CRPOA has already collected and set aside $78,000
in assessments from lot owners to pay the Association's cost share on the project. The
CRPOA will collect additional assessments to cover the Associations $133,000 cost
share on the new project cost of $532,000.
Table 2 is a summary of the financial aspects of the project. Annual assessments will be
set at $525 per member to pay a Construction Fund loan of $399,000. This represents a
monthly assessment of $44.
Table 2. Columbine Ranches POA Financial Summary
. Proiect Cost $532,000
CWCS Loan Amount $399,000
CWCS Loan Pavment {includes 10% reserve.f $28 320
Number of Members (Membershio Units or Lots) 54
Assessment oer Member (Lot) $525
Assessment oer Member, oer Month $44
Annual Loan Cost per acre.foot 1120 acre.feet total vield) $236
MHI Adams County, 1990 (1990 State Averaae " $30,140\ $30,522
Water Is used by the members (lot owners) for lawn and garden irrigation, stock
watering (primarily horses), and for fire protection. All uses occur within an existing
subdivision located in unincorporated Adams County, The median household income in
the service area qualifies for the Municipal Standard Income Lending rate. The original
cwes Loan of $305,250 has terms of 4.75% for 30 years. The added loan amount of
$93,750 will carry 2001 Municipal Standard Income rates of 5.5% for 30 years.
Alternative financing sources: The CRPOA actively sought alternative financing for
this increased loan amount, but was not able to obtain long-term permanent financing.
The Association was offered a loan from the First National Bank of Brighton, however
the terms were prime plus 0.5% for 5 years. This option would result in a loan payment
of $46,000 per year (compared to $28,320 with a CWCB loan.) The bank option is not
financially feasibly for the Association.
Credit worthiness: The CRPOA has no debt, other than the existing CWCS loan. Table
. 3 shows the Financial Ratios and Indicates, with the exception of the Monthly Water Bill,
average ability to repay with the project in place.
3