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<br />., <br /> <br />, <br /> <br />Central Weld County Weter District - Proposed Dry Creek Reservoir <br />November 25-26, 2002 <br /> <br />Agenda Item 20g <br /> <br />Permitting - Preliminary environmental assessments have been completed. There are several . <br />wildlife and plant issues to be addressed, but none that will prevent construction permitting. Initial <br />archaeological assessment has been conducted and,has identified several sites of significance <br />within one mile of the site. Additional on-site assessment will be required before construction to <br />determine appropriate mitigation. The reservoir development will require a Corps of Engineers 404 <br />Permit. In order to comply with Department of Wildlife requirements covered by the 404 permit, a <br />depletion analysis will be necessary to determine efft;lcts of the reservoir on the South Platte River. <br />No significant depletion is expected. The project will 'be subject to review for special use by Larimer <br />County. Based on conversations between L TWD and Larimer County, no issues have been <br />identified that would prevent development of the reservoir. Property issues are currently being <br />addressed. A total of 23 properties are expected to be affected, only four of which are expected to <br />have to be purchased in their entirety. <br /> <br />Financial Analvsls <br /> <br />The total estimated cost of the project is $10,500,000 in a 50/50 partnership with the L TWD, with <br />each entity borrowing $3,937,500 from the CWCB. The total loan will be for 75% of the estimated <br />project cost. The District qualifies for a blended Municipal Middle/High Income Interest Rate. Staff <br />is recommending a 20-year maximum amount of $3,~37,500 at an interest rate of 4.15% per year. <br />The District has budgeted the $1,312,500, 25 percent local match, needed for their portion of the <br />project, and the money is in place in reserves for that purpose. The current water rates are <br />sufficient to support the loan payment, and no rate increases are necessary to complete this <br />project. <br /> <br />Alternative financing sources: The District did consider bonding for this project but opted to . <br />pursue funding through CWCB because of more favorable lending rates. <br /> <br />Table 1 is a summary of the financial aspects of the project. A CWCB Construction Loan of <br />$3,937,500 would have an annual payment of $322,948 (including the 10% reserve requirement) at <br />the loan terms of 4.15% per year for 20 years. <br /> <br />Table 1. Financial Summary <br /> <br />Proiect Cost 150% for CWCWD\ . $5,250,000 <br />Number of Residents . 40,000 <br />Number of Water Taos , 9500 <br />CWCB Loan Amount 120 years) . $3,937,500 <br />CWCB Loan Payment lincludes 10% reserve) , $322,948 <br />Current Monthlv Water Rate IAveraae) , $21.50 <br />Monthly ner tan cost of the CWCB loan $2.83 <br />Annual Loan Cost oer Acrt;l-Foot 12600 acre-feet;" 50% of storaae) $124.21 <br /> <br />Creditworthiness: The District currently has two r~venue bonds, one with US BanCorp Piper <br />Jaffray, with a remaining amount of $2,455,000 maturing in 2007, and one with the Colorado Water <br />Resources and Power Development Authority, with a remaining amount of $1 ,098,410 maturing in <br />2012. Annual payments on both bonds total $625,'570. The District is in compliance with the <br />covenants of the bond resolutions pertaining to revenues and expenses. CWCB would require . <br />parity of pledged water revenues with these bonds. . <br /> <br />Page 4 'of 6 <br />