C153719 Contract

• Contract/PO #: C153719
• Contractor Name: Johnstown, Town of
• Contract Type: Loan
• Water District: 13
• County: Larimer
• County: Weld
• Bill Number: SB 94-029
• Loan Projects - Doc Type: Contract Documents

TOwn OF JOHNSTOWN, COLORADO

ORDINANCE NO. 545

AUTHORIZING A LOAN CON"rRACT AND PROMISSORY NOTB TO
FINANCE THE CONSTRUCTION OF A RAW WATER PIPELINE.

WHEREAS, pursuant to the provisions of C.R.S. 37-60-119 and
37-60-120, tne State of Colorado is authorized to loan money for
th~ construction of water projects for the benefit of the people of
the State of Colorado, and

WHEREAS, the Town of JOhnstown Water Activity Enterp~ise is an
enterprise within the m~aning of C.R.S. 37-45.1-101, et seq., and
Article XI Section 20, of the Colorado Constitution, and was
established by Ordinance No. 521 at the Town of Johnstown, and

WHBREAS, the Board of TrusteeS of the Town of Johnstown water
Activity Enterprise believes it to be in the best interests of the
Water Enterp:rise to enter into the attached loan contract and
promissory note which provides a loan from the Colorado water
Conserv~tion Board in the amount of $2,542,500.00 at an interest
rate of four percent (4%) per annum for a term of thirty (30)
years, tmd

WHEREAS, the re-payment of this loan contract and promissory
note will be provided from revenues pledged for the re-payment
th~reof from water system revenues and therefore, this obligation
does not constitute a <iebt of. the Town of uohnstown within the
meaning of any constitutional or statutory limitation.

NOW, THEREFORE, BE IT ORDAINED by the Board of Trust~es of the
To~n Wa~er ACtivity Enterprise, Johnstown, COlorado:

Se~tion 1. Loan Contract and Promissory Note

1. That the loan contract and promissory note between the
State of COlorado for the use and benefit of the Departmenc of
Natural Resources, Colorado Water Conservancy Board (CWCB), and the
Town of Johnstown Water Activity Enterprise are hereby authorized
and appLoved, and the Mayor is authorized, on behalf of the Board
of Trustees of the Town of Johnstown Water Activity Enterprise, to
sign any and all documentation ne~ded to fulfill the Obligations
therein on behalf of the Water Enterprise.

2. The Water Activity Enterprise is authorized to undertake
and complete the proj ect described in said loan contract and
promissory nOte.

3. The' term of the note shall be thirty (30) years, the
principal amount $2,542,500.00 and the interest rate four percent
(4~) per ann"Um.

4. This Ordinance shall be irrepealable until the
indebtedness authorized is fully p~id or discharged.

5. To fulfill its obligations under the loan contract and
promissory note, the Water Activity Enterprise is Authorized to:

a. Enter into and comply with the terms of the attaChed
contract with the Scate.

b. To fix and collect w~ter charges and fees sufficient
to payoff the loan made under the contract and
establish a reserve debt service fund by making an
annual deposit equivalent to one-tenth (1/10) of an
annual payment every year for ten (10) years and to
replenish that fund any time it is depleted.

ApPENDIX 3 TO CONTRACT #C 1 53719