BOARD02336

• Board Meeting Date: 9/27/1999
• Description: Directors' Reports
• Board Meetings - Doc Type: Memo

.

Colorado Water Conservation Board

Department of Natural Resources
1313 Sherman Street
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]

STATE OF COLOMDO

.

MEMORANDUM

Bill Owens
Governor

TO:

Colorado Water Conservation Board Members

Creg E. Walcher
Executive Director, DNR
Peter H. Evans
Director, ewes

FROM: Mike Serlet, P.E.
Chief, Project Planning and Construction Section

DATE: September 21, 1999

SUBJECT: Agenda Item 3b, September 27-28, 1999, Board Meeting-
Water Project Construction Loan Program
General and Financial Matters, Delinquent Payments

Staff has analyzed all payments received to date in FYOO 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 annuai
payment will be due. This policy does not apply retroactively to contract made prior to March 1998.

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. CWCB 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.

.

· In 1989, the Coon Creek Reservoir and Ditch Company borrowed $55,000 at 5.00% interest
over 25 years to rehabilitate Coon Creek Reservoir Dams No.1 and No.2 located in Mesa
County. The annual payment is $3,902.25 due in September. Payments from the beginning
have been typically 6 to 9 months late, and they are 2 payments behind schedule. They paid
$1,500 in July 1997, which was credited toward interest on their 1996 payment (number 6).

1