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<br />( <br /> <br />Castle Pines North Metro District <br />November 21, 1995 <br />Page 7 <br /> <br />the existing number of taps. Future development would reduce this amount on a per <br />residence basis. Thus the financial impact of the loan itself is not severe, <br /> <br />CONCLUSIONS <br /> <br />While the bankruptcy and the resulting long-term indebtedness cloud somewhat the financial <br />condition of the District, the immediate outlook for repayment of the Construction Fund loan <br />appears favorable. Revenues from the Water and Sewer Funds are not a part of the "Pledged <br />Revenues" in the bankruptcy plan and these revenues should be more than adequate for loan <br />repayment given a reasonable level of development in Castle Pines North over the next 15 <br />years. <br /> <br />RECOMMENDATIONS <br /> <br />Based on the preceding analysis, it is recommended that we proceed to contract negotiations <br />with the CPNMD for a loan of $301,500 for 15 years at a 5.0 percent lending rate for <br />rehabilitation of the three existing Arapahoe wells and that the Board utilize, as a portion of <br />the security for the loan, a senior position with respect to the revenues of the District's Water <br />and Sewer Funds. <br /> <br />cc: Mike Serlet <br />Jan Illian <br />Linda Bassi, AG's Office <br />Lorene Gruzdis, CPNMD <br />Jim Jehn, Jehn Water Consultants <br />Will Douglas, George K. Baum & Co. <br /> <br />w:\ WCTRANS\SECBlCSTLPlN2,MEM <br />