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<br />~ <br /> <br />- 2- <br /> <br />" <br /> <br />The Board has authorized several loans from the Arkansas River Augmentation Loan tit <br />Account to LA WMA for the purposes outlined in the enabling legislation. As part of the Kansas v. <br />Colorado case, Kansas has raised many issues specific to the operation of LA WMA' s replacement <br />plan in the Lower Arkansas River basin. In order to address these issues, LA WMA must prepare <br />detailed responses to Kansas' allegations for the State of Colorado to present to the Special Master. <br />Given the unanticipated legal and engineering Josts associated with preparation of this report <br />(estimated at over $300,000), LAWMA does n6t feel they will be able to meet their financial <br />responsibilities for their CWCB loans in 2003. LAWMA therefore has requested a defennent of <br />their 2003 $122,000 loan payment as well as their other two 2003 payments. <br /> <br />LA WMA currently has three loans in payba,ck with the CWCB as shown below: <br /> <br />Loan Date of Current Annual Due <br />Number Contract Princioal Tenus . Balance Pavment Date <br />CI53715 5/1/97 amend $3,688,567 3%-40 yrs $3,628,346 $122,000 May I <br />C153678 5/11/94 $ 65,000 4 1/4%-10 yrs $ 29,280 $ 8,114 Nov I <br />CI53756 9/18/97 $ 65,000 3 1/4%-10 yrs $ 47,633 $ 7,718 July I <br /> <br />The Board authorized, for the same reasons, a defennent to LAWMA's May 1, 2002 <br />payment of Contract #CI53715. LAWMA is current in all oftheir other loan contract payments. <br /> <br />Discussion <br /> <br />tit <br /> <br />The Board has the statutory authority under Section 37-60-120 (3), CRS to make loan <br />defennents provided the borrower has encountered significant and unexpected financial difficulties, <br />and that it has been duly diligent in its efforts to comply with the repayment provisions of its <br />contract with the Board. The Board's Financial Policy #10 (attached) clearly provides guidance in <br />the resolution of this request. <br /> <br />In order to maintain the long-tenn integrity 'of the loan, it is the staff recommendation that the <br />Board grant LAWMA's deferral request. At LA\\jMA's request, the deferral would be approved on <br />the condition that the deferred interest payment' be added to the current loan balance, and the <br />resulting new balance be re-amortized over the remaining life of the loan. This re-financing of the <br />loan allows it to be repaid and still allow LA WMA relief from its current financial hardship. <br /> <br />Recommendation <br /> <br />The staff recommends the Board adopt a re~olution to approve the Lower Arkansas Water <br />Management Association's request for financial relief by granting a one-year, 100% defennent of <br />their May 1, 2003 contract #C153715 loan payment in the amount of$122,000.00, their July 1, 2003 <br />contract #C153756 loan payment in the amount of$7,718 and their November I, 2003 contract <br />#C153678 loan payment in the amount of$8,114. The deferred interest amount of each loan will be <br />added to the current loan balance that will then be fe-amortized over each loan's remaining life. The <br />deferrals are based on the Board's finding that the pistrict has encountered significant and <br />unexpected financial difficulties, and that it has be~n duly diligent in its efforts to comply with the _ <br />repayment provisions of its contracts with the Bo~d. ,., <br /> <br />Flood Protection. Water Project PlaMing and Financing. Stream and Lake Protection <br />Water Supply Protection. Conservation Planning <br />