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<br />STATE OF COLORADO <br /> <br />Colorado Water Conservation Board <br /> <br />Department of Natural Resources <br />1313 Sherman Street, Room 721 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3441 <br />FAX, (303) 866-4474 <br /> <br />~ <br /> <br />Bill Owens <br />Governor <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />Peter Evans, y <br /> <br />Bill Greer/15 <br /> <br />Greg E. Walcher <br />Executive Director <br /> <br />FROM: <br /> <br />Peter H. Evans <br />ewes Director <br /> <br />DATE: <br /> <br />May 17, 2000 <br /> <br />Dan McAuliffe <br />Deputy Director <br /> <br />SUBJECT: <br /> <br />Ute Water Conservancy District - Request for Parity <br /> <br />The Ute Water Conservancy District (District) of Grand Junction is requesting parity status with <br />CWCB debt on the District's Series 2000 Water Revenue Bonds in the aggregate amount of <br />$17,095,000. The net proceeds of the bond issue will be used, along with $27,6 million in CWCB <br />funding and $13.0 million in District funds, to finance the District's Plateau Creek Pipeline <br />Replacement Project, <br /> <br />The District presently has five CWCB loans with a total outstanding balance of $13,551,427. The <br />District is current on all CWCB loan payments, The District has yet to draw the full amount on <br />two existing loan contracts. An additional loan for $10 million is included in lIB 00-1419, The <br />District's total debt obligation to the CWCB will amount to about $33 million when all loan <br />contracts have been signed and all loan funds have been disbursed (assuming lIB 00-1419 is <br />signed into law), <br /> <br />1 have reviewed portions of the Preliminary Official Statement of April 27, 2000 for the Series <br />2000 bonds, Linda Bassi and 1 have reviewed the Parity Revenue Bond Certificate of May 17, <br />2000 (copy attached) prepared for the District by Costello, AUyn & Company, <br /> <br />Exhibit A to the parity certificate indicates net revenues in 1999 of $6,737,705 using actual <br />revenues for the year adjusted for a rate increase which took place about mid-year, No more than <br />ten percent of the revenues used in Exhibit A originated from tap fees. <br /> <br />Exhibit B indicates that the maximum total annual debt service expected in the next few years for <br />all CWCB loans plus existing bonds of the District and the Series 2000 bonds will amount to <br />$4,867,707 resulting in a very good debt service coverage ratio of 1.38, <br /> <br />Based on the above, it appears that the request meets the Board's requirements for consent to <br />parity on new debt. Attached is a suggested consent form for your signature. <br /> <br />Cc: Mike Serlet <br />Jan Illian <br />Steve Biondo <br />Linda Bassi <br />