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<br />Based on the sununary of costs illustrated above, the Town of Monument has a current total
<br />project cost of $4,323,755, The Town's funding sources for the project are sununarized as follows:
<br />
<br />El Paso County
<br />Feasibility Grant CWCB
<br />Town General Water Fund
<br />Fishing is Fun Grant
<br />Prebb les Habitat Credit
<br />Palmer Lake Sanitation District
<br />CWCB Existing Loan
<br />CWCB Prebb1es Mouse Grant
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<br />= $1,273,950
<br />= $5,000
<br />= $100,000
<br />= $200,000
<br />= $103,250
<br />= $4,407
<br />= $2,081,000
<br />= $194.428 (Contingent upon Board Approval)
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<br />Total available funds:
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<br />= $3,962,035
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<br />Based on the total project cost of $4,323,755, minus the available funding of $3,962,035, the
<br />Town of Monument is experiencing a funding shortfall of $361,720. To address this funding
<br />shortfall the Town of Monument is requesting an additional10an of $362,000 from the Colorado
<br />Water Conservation Board, for a total amended loan amount of$2,443,000 at 5.5% for 30-years.
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<br />DISCUSSION
<br />
<br />Paragraph (2) of Section 1 ofHB 00-1419 allows that loans made by the Colorado Water
<br />Conservation Board may be increased or decreased as may be justified by "reasons of ordinary
<br />fluctuations in construction costs as indicated by the engineering cost indices applicable to the types
<br />of construction required for each project or as may be justified by reason of changes in the plans for
<br />a project due to differing or unforeseen site conditions, errors, or omissions in the plans and
<br />specifications, changes instituted by regulatory agencies, or changes in material quantities beyond
<br />contract limits". Unforeseen site conditions, design modifications, and additional work not
<br />prograrnnted in the original cost estimate of the project, has required work that increases the total
<br />estimated cost of the project and therefore justifies the Town of Monument's requested $362,000
<br />increased loan request.
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<br />The new loan amount for the Town of Monument will be $2,443,000 (which is less then
<br />75% of the total construction cost) at an interest rate of 5.50 % for 30-years, The cash flow
<br />analysis provided, based on the Town's new annual payment of $168,092, indicates sufficient
<br />annual revenues in each year of CWCB loan repayment, which is from 2003 through 2033, With
<br />the amended loan amount all financial indicators still fall in the strong category with the exception
<br />of the debt per tap, which is in the average category.
<br />
<br />The Town of Monument has a separate "Water Enterprise", which receives revenues from
<br />its water customers. The CWCB will take collateral interest in this stream of revenues, and will be
<br />in a parity position with all existing debts of the enterprise..
<br />
<br />Based on staff's review of the original feasibility cost projections, the supporting
<br />documentation provided by the Town of Monument of additional cost occurred to-date, inspection
<br />of the site, and overall financial strength of the Town, staff finds the requested loan increase of
<br />$362,000 to be economically, financially, and technically sound.
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