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<br />. <br /> <br />. <br /> <br />" <br /> <br />Agenda Item 18a. <br />November 7, 1995 <br /> <br />2 <br /> <br />DISCUSSION <br /> <br />The Town, the CWCB Staff, and Staff from the Colorado Water Resources and Power <br />Development Authority have discussed the Town's overall funding needs. It has been agreed <br />the CWCB will offer fInancing for the raw water portion, and the CWR&PDA will offer <br />fInancing for the drinking water portion of the Town's overall funding needs. This is: in <br />accordance with MOU between the CWCB and the CWR&PDA. (The CWR&PDA has already <br />authorized $500,000 for the drinking water portion of the project.) <br /> <br />The proposed project will maintain the current capacity of 3.6 CFS, with an ability to supply <br />up to 7 acre feet of water per day. <br /> <br />The Town has posed an Amendment #1 ballot question to its residents, to be voted on November <br />7, 1995. This ballot question must pass, to enable the Town to contract for a loan with the <br />CWCB. .-- <br /> <br />The Town of Lyons had a Median Household Income between 80% and 110% of the Statewide <br />MHI for 1990. A loan to the Town should thus be at the "Standard Income" rate for a <br />municipality, to be set by the CWCB November 6, 1995. <br /> <br />COLLATERAL <br /> <br />The Town of Lyons has a separate water enterprise which receives revenues from its water <br />customers. The CWCB will take a collateral interest in this stream of revenue. <br /> <br />The Town's Water Enterprise also has certain land and water rights assets which could be <br />pledged as additional collateral. However, a collateral interest in the revenue stream should be <br />adequate security for the loan (the CWR&PDA uses the revenue stream as the only collateral <br />for its loans to municipalities,) <br /> <br />STAFF RECOMMENDATION <br /> <br />The staff recommends: <br /> <br />1. That a construction fund loan in an amount of $280,500 not to exceed 75%"'of <br />actual project costs, be approved for The Town of Lyons (and/or The WlIter <br />Enterprise for The Town of Lyons) to rehabilitate the Town's Raw Water Intake <br />Structure, and <br /> <br />2, That the financing terms shall be at an annual percentage rate equal to <br />the "Standard Income" rate for a municipality (as set by the CWCB <br />November 6, 1995), for a duration of 30 years, and <br />