C152718 Feasibilty Study - Laserfiche WebLink

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I I I I I I I I I I I I I I I I I I I SECTION TWELVE PROposED FINANCING The District is requesting that the Colorado Water Conservation Board furnish a loan in the amOlmt of $1,090,000 and that the Colorado Water Resources and Power Development Authority furnish a like loan to fund the other 50% of the project. It is assumed for financial purposes that the interest rates wiD be 5.0% and 5.25% respectively. The District has previously funded $1,100,320.90, which amounts to 33.5% of the project. The following ballot question was approved by the voters of the District on May 7, 1996. If it is determined that the Morgan county Quality Water District does not qualifY as an enterprise or is not exempt under the provisions of Article X, Section 20 of the Colorado Constitution, shall the District be authorized and pennitted to retain, appropriate, and utilize any and all revenues generated in 1993, 1994, and 1995 in excess of the limits imposed by Article X, Section 20 of the Colorado Constitution, and be authorized to retain, appropriate, collect and utilize, by retention for resCIVe, carry over fund balance, or expenditure, the full proceeds and revenues received from every source whatever without limitation in 1996 and all subsequent years, not withstanding any limita.tion of Article X, Section 20 of the Colorado Constitution? The District does not qualify as an enterprise because tax revenue exceeds 10% of total revenue. The election of May 7, 1996 authorized the Oistrict to retain excess reven:ues'but ~ not exempt them from borrowing limitations. Art election is scheduled for May 1997 to authorize the loans. Should the election fail, the District Board of Directors would-reduce taxes to comply with the enterprise limitation and increase rates to replace the lost revenue. > 22