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<br />STAFF RECOMMENDATIONS: <br /> <br />Staff recommends that the Board approve an increase of $362,000 from the 2002 Severance <br />Tax Trust Fund Perpetual Base Account for the Monument Lake Dam Project for the Town of <br />Monument. The additional $362,000 increment of funding would be for 30-years at a lending rate <br />of 5.50%. The total Severance Tax Trust Fund Perpetual Base Account funding level for this <br />project would amount $2,443,000. As collateral for the loan, the Town of Monument pledges <br />revenues from its "Water Enterprise". <br /> <br />Staff further recommends that the following conditions be met prior to entering into a <br />contract for the additional loan increment of funding: <br /> <br />1. That the Town of Monument's Town Council adopt a resolution or resolutions <br />approving the loan, and pledges of revenues from the Town's "Water Enterprise". As <br />collateral for the loan the Town of Monument shall pledge revenues from its <br />Water Enterprise backed by a rate covenant and annual financial reporting. <br /> <br />2. Any collateral pledged for the loan shall be free of all liens and encumbrances. <br /> <br />3. The CWCB Construction Fund loan shall have parity status with any existing debt of <br />the Company with respect to a pledge of revenues. <br /> <br />4. The loan increase shall be contingent upon all standard contracting provisions of the <br />Colorado Water Conservation Board. <br /> <br />ACTION TAKEN: <br /> <br />A motion was made by Harold Miskel on July 24, 2002 to approve staff <br />recommendations that the Board approve an increase of $362,000 from the 2002 Severance <br />Tax Trust Fund Prepetual Base Account for the Monument Lake Dam Project for the Town <br />of Monument. The additional $362,000 increment of funding would be for 30-years at a <br />lending rate of 5.5%. The total Severance Tax Trust Fund Prepetual Base Account funding <br />level for this project would. be $2,443,000. Motion was seconded by Ray Wright and <br />approved by a vote of 9-0. <br /> <br />6 <br />