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<br />,. <br /> <br />.- <br /> <br />. <br /> <br />STATE atCOLORADO <br /> <br />e <br /> <br />Colorado Water Conservation Board <br />Department of Natural Resources <br />721 Centennial Building <br />1 31 3 Sherman Street <br />Denver, Colorado 80203 <br />Phone: (303) 866.3441 <br />FNC 13031866.4474 <br /> <br />Roy Romer <br />GovernOI <br /> <br />TO: <br /> <br />Colorado Water Conservation Board Members <br /> <br />Bill Green, P.E. ~G" <br />Project Planning and Construction <br /> <br />James S. Lochhead <br />Executive Director, DNR <br /> <br />Dtlries C. Lile, PE. <br />Dirpclor, eWeR <br /> <br />FROM: <br /> <br />DATE: <br /> <br />February 24, 1997 <br /> <br />SUBJECT: <br /> <br />LA WMA Feasibility Study Loan <br /> <br />During the discussion of the additional $65,000 feasibility study loan for LA WMA at the January <br />board meeting, a question was asked by the Board as to LA WMA's financial capacity to pay <br />additional debt. I indicated that we had not looked into that prior to the Board meeting but that we <br />would do so before contracting with LA WMA for the additional loan. <br /> <br />The following table gives the debt service associ<lted with LA WMA's two existing Construction Fund <br />loans, the estimated debt service for the new loan, and LA WMA' s estimated operating expenses for <br />1997 for a total of$382,814. By comparison, LA WMA's operating revenues are estimated at about <br />$390,000 which indicates that expenses and reverlues are essentially in balance for 1997. <br /> <br />LA WMA Estimated Expenses for 1997 <br /> <br />Feasibility Study Loan, $65,000 <br />Water Rights Loan, $3,750,000 <br />New Feasibility Study Loan, $65,000 (est) <br />Total Loan Payments <br />Operating Expense (est) <br />Total Debt Service plus Operating Expense <br /> <br />$8,114 <br />$122,000 <br />$7.000 <br />$137,814 <br />$245.000 <br />$382,814 <br /> <br />In discussing the preceding figures with Don Higbee of LA WMA, we were told that operating <br />expenses for 1997 reflect extraordinary costs associated with current activities (such as water rights <br />acquisitions and revisions to LA WMA's augmentation program) which are not expected to be a part <br />of future operating expenses. Once the augmentation program is in place operating expenses should <br />decline significantly. <br /> <br />We would expect to be able to enter into a contract with LA WMA for the feasibility study with no <br />further action requested from the Board. <br /> <br />cc: <br /> <br />Chuck Lile <br />Peter Evans <br />Bill Stanton <br /> <br />Ian llIian <br />Linda Bassi, AGO <br />Don Higbee, LA WMA <br />