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<br />
<br />WHEREAS, at a regular meeting and workshop of the Colorado
<br />Water Conservation Board held at Denver, Colorado on February 19,
<br />1993, the Board passed a resolution which established, at the
<br />request of the Borrower, a authority for a loan to the Borrower in
<br />principal amount of $400,000, which is to be in addition to the
<br />Colorado Water Conservation Board loan which was authorized by the
<br />Colorado Legislature in 1990, payable by the Borrower at an
<br />interest rate of 4% for a term to be determined at a later date;
<br />and
<br />
<br />WHEREAS, pursuant to House Bill No. 93-1273 amending Senate
<br />Bill No. 90-41, which was duly enacted into law in Section 1 of
<br />Chapter 254 of the 1993 Session Laws of the First Regular Session
<br />of the Fifty-Ninth General Assembly of the State of Colorado, the'
<br />$1,050,000 loan to the Town of Erie for a water project approved in
<br />1990 was deauthorized; and
<br />
<br />WHEREAS, pursuant to House Bill 93-1273, the Colorado Water
<br />Conservation Board was further authorized to loan the cumulative
<br />sum of $7,050,000 to the cities of Berthoud, Fort Lupton, Fort
<br />Morgan, Hudson, Old Town Superior, and Wiggins, and to the Town of
<br />Erie, Colorado to enable their participation in the Project if the
<br />Colorado Water Conservation Board determines, in its sole
<br />discretion, that the said project and the participation of these
<br />cities is technically and financially feasible, that financing
<br />through the Colorado Water and Power Development Authority is not
<br />available, and establishes appropriate repayment terms with each
<br />entity; and
<br />
<br />WHEREAS, at a regular meeting of the Colorado Water
<br />Conservation Board held at Alamos a , Colorado on September 10, 1993,
<br />the Board passed a resolution which authorized a contract with the
<br />Borrower for a loan in the principal amount of at least $1,450,000,
<br />with the first $400,000 payable by the Borrower at a rate of 4%
<br />interest over a 40 year term, and the remaining $1,050,000 payable
<br />by the Borrower at a rate of 5% interest over a 40 year term. The
<br />resolution provided further that the principal amount and terms may
<br />renegotiated with the Borrower so long as the renegotiated amount
<br />allows for the participation in the Project by Fort Lupton, Fort
<br />Morgan, and Hudson and the total amount of all such loans does not
<br />exceed the $7,050,000 which is the total amount of the
<br />appropriation for the Project; and
<br />
<br />WHEREAS, at a regular meeting of the Colorado Water
<br />Conservation Board held in Denver, Colorado on November 9,1993, the
<br />Board approved a resolution which revised the terms of the loan to
<br />an interest rate of 2% for a period of 40 years; and
<br />
<br />WHEREAS, the total cost for the Town of Erie to participate in
<br />the Project has been estimated by the District to be $1,544,000;
<br />and
<br />
<br />WHEREAS, based on the availability, pursuant to HB 93-1273,
<br />of the sum of $7,050,000 to entities eligible thereunder, and based
<br />on the fact that of the entities eligible, only the Towns of Erie
<br />
<br />Page 3 of 13 pages
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