Laserfiche WebLink
<br />. <br /> <br />. <br /> <br />Agenda Item 29p. <br />November 4, 1994 <br /> <br />.- <br /> <br />3 <br /> <br />The District has in place rules and regulations which promote water conservation. All <br />water is metered, and billed on an increasing block rate structure, Shower flow restrictors and <br />low flush toilets are required, Conservation is promoted through literature, and through <br />education of the residents, <br /> <br />As collateral for the loan the District would provide the following: <br /> <br />1. A security interest in excess water funds derived from Water User Fees <br />from existing and future homeowners. <br /> <br />2. A security interest in Infrastructure Fees ($1500 per house) from future <br />home construction. <br /> <br />(Note: The district can not legally pledge tbe visitor's center as collateral for their loan.) <br /> <br />The District is still exploring other sources of fUnding including commercial banks, the FmHA, <br />and the Colorado Depamnent of Local Affairs. An emergency loan from the CWCB would <br />provide a timely response to their problem, would be affordable for the District, and could be <br />repaid with standard Construction Fund loan filnds within one year. <br /> <br />The District has a cooperative agreement with 11 sister district, (the Castle Pines Metro District) <br />where by they can receive water through an 8 inch connector pipeline, This option could be <br />implemented if a second well fails, but would still result in severe water restriction during <br />summer months, for the current North Metro Pistrict Water users. <br /> <br />Staff poled the board as part of this application, and received generally favorable response to <br />the Emergency Portion of the loan, provided it is to assist the existing homeowners. However, <br />comments from individual Board members reflected these areas of concern: <br /> <br />1, Its' a stretch to call this an emergency loan, since the problem with well A-3 <br />might have been anticipated. <br /> <br />2. The collateral for the loan must be solid, considering the recent bankruptcy, <br /> <br />3. It may not be wise for the CWCB Board to fInance growth in areas where the <br />water supply is nonrenewable, <br /> <br />4. Granting of this emergency loan could set a precedent so that others with <br />immediate (ilOn emergency) funding needs may also want to apply, <br /> <br />5. Concern that the District should obta.in private bridge loan fInancing, instead <br />of requesting an Emergency Loan, <br />