BOARD02588

• Board Meeting Date: 5/24/1999
• Description: Directors' Reports
• Board Meetings - Doc Type: Memo

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COLORADO WATER RESOURCES &
POWER DEVELOPMENT AUTHORITY

Logan Tower Bldg. - Suite 620, 1580 Logan Street, Denver, Colorado 80203
303/830-1550 . Fax [phone] . [e-mail]

MEMORANDUM

May21, 1999

TO:

Members, Colorado Water Conservation Board, and Peter Evans

FROM:

Daniel L. Law, Executive Director

RE:

Director's Report

Small Water Resources Proiects

Currently, no loan applications are being reviewed, and no bond issues are contemplated for 1999.

Water Pollution Control Revolvina Fund

The FY1999 capitalization grant of $10.8 million has been received from EPA. With this grant, the cumulative
amount received for the WPCRF is $127.7 million.

A bond issue to fund approximately $43 million in loans is currently scheduled to be sold on or around June
15. The issue will include Aurora ($24 million for reuse plant), Fremont Sanitation District ($8.1 million for
sludge and maintenance facilities), Grand County Water and Sanitation District NO.1 ($4 million for treatment
plant), and Steamboat Springs ($6.6 million for treatment plant). A direct loan for Fraser Sanitation District
($1 million for treatment plant) is expected later this year.

Drinkina Water Revolvina Fund

To date the EPA has awarded $36.3 million in capitalization grants for the Drinking Water revolving loan fund.
This amount includes the transfer of $6.7 million from the WPCRF grant and the return of $805,000 of unused
capacity development set-aside funds to the revolving fund.

In late April the Authority issued bonds to fund approximately $51 million in loans. Loans from this issue were
executed with Greeley ($15 million for treatment plant), Aurora ($15 million for treatment plant), Fort Collins
($5 million for treatment plant), Julesburg ($1 million for treatment plant), Left Hand Water District ($6.6 million
for treatment plant), Grand County Water and Sanitation District NO.1 ($3 million for treatment plant) and
Glenwood Springs ($5 million for transmission line). Loan rates ranged from 3.6% to 3.8%.

As a result of our "cross-collateralization" pledge between the WPCRF and the DWRF, the bonds received
a "AAA" from Standard and Poor's, Moodys and Fitch, IBCA. These bonds are the highest rated, non-
enhanced bonds in the State.