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<br />. <br /> <br />STATE ~ COLORI\DO <br />~ <br />~ <br /> <br />Colorado Water Conservation Board <br />Department of Natural Resources <br />721 Centennial Building <br />1313 Sherman Street <br />Denver, Colorado 80203 <br />Phone: (303) 866-3441 <br />FAX: (303) 866.4474 <br /> <br />MEMORANDUM <br /> <br />Roy Romer <br />Governor <br /> <br />(Updated May 18, 1998) <br /> <br />James S. Lochhead <br />Executive Director, ONR <br />OariesC.Ule, P.E. <br />Director, CWCB <br />Peter H. Evans <br />Acting Director, CWeB <br /> <br />TO: <br /> <br />Colorado Water Conservation Board Members <br /> <br />FROM: Peter Evans, Bill Stanton, and John Van Sciver <br /> <br />DATE: April 29, 1998 <br /> <br />SUBJECT: Agenda Item ISb. May 11-12, 1998, Board Meeting-- <br />Chatfield South Water District <br /> <br />Recommendation to revise loan terms for the existing $500,000 authorization to <br />allow the District to borrow 100% of the cost of the water purchased. <br /> <br />BACKGROUND <br /> <br />In November 1997, the CWCB recommended a loan in amount of $500,000 to the Chatfield <br />South Water District to purchase of water rights for a new domestic water system for the area <br />south of Chatfield Reservoir. That loan is included in the Construction Fund Bill (lIB 98-1189) <br />that has been approved by the General Assembly. The CWCB specified that the loan could be <br />used to fund up to 75 % of the cost of the water rights purchased. The memo, as approved by the <br />Board, is attached. <br /> <br />The District's budget indicates that the cost to construct and buy water for Phase I of the new <br />water system will be $1,156,000. Phase I will serve 100 customers and the District plans to use <br />$400,000 of the CWCB loan authorization, and $741,000 from the Colorado Water Resources <br />and Power Development Authority to pay for it. For Phase I, CWCB financing will represent <br />only 35% of the total project cost. Residents will pay an additional $210,000 systems fee directly <br />to Denver to establish service. CWCB financing represents a relatively small part of the total <br />project cost. For this reason the District is requesting that it be allowed to use the CWCB loan to <br />finance up to 100% (instead of 75 %) of the cost of the water purchased. <br /> <br />DISCUSSION <br /> <br />The CWCB established the 75% requirement for the District's loan. This occurred in November <br />1997 as part of the loan review and approval process. The CWCB may revise this requirement <br />without affecting the legislation. <br />