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<br />, , <br /> <br />. <br /> <br />. <br /> <br />- 7 - <br /> <br />lands to be benefitted. The City does not, at present, have the <br />power to unilaterally impose either special assessments or special <br />assessing districts on residents because of the limitations set <br />forth in People's Ordinance No. 33. Unless and until city voters <br />amend People's Ordinance No. 33, special assessments can only be <br />initiated by the affected property owners. <br /> <br />C. Financial Obliaations <br /> <br />1. The District has two major categorieS of debt: <br /> <br />a. The first category of debt is an obligation <br />in the face amount of $1,943,891 to the Colorado Water Conservation <br />Board ("ewCS"). The amounts due to CWeB are payable only out of the <br />revenues of the operation of the District's irrigation system, and <br />are not general obligations of the District. <br /> <br />three general <br />tr ict Bonds", <br /> <br />b. The second category of debt consists of <br />obligation bonds which are identified on Exhibit "Dis- <br />attached hereto (the "District bonds"). <br /> <br />2. The debt of the District will be restructured as <br /> <br />follows:. _ <br /> <br />a. Prior to the effective date of this Plan and <br />Agreement, the City and the District have negotiated with CWCB re- <br />garding the discharge of the CWCB loan upon payment of a negotiated <br />lump sum. The parties hereto expect to obtain from CWCB a letter <br />of intent, agreeing to accept a lump sum payment not to exceed <br />$500,000 to discharge all of the District's obligations to CWCB. <br />The parties agree to enter into this Plan and Agreement notwith- <br />standing the fact that the amount of the CWCB obligation has not <br />been determined. As soon as possible after the annexation date, the <br />District shall pay to ewCB the lump sum payment discussed above to <br />fully discharge its obligations to ewCB. To the fullest extent pos- <br />sible, such lump sum payment shall be paid from the cash and current <br />assets of the District. <br /> <br />b. As soon as possible after the annexation date, <br />the city will issue new debt, which will include (i) a refinancing of <br />the District bonds, (ii) any amounts necessary to pay the settlement of <br />the CWCS obligation, but only to the extent that such settlement can <br />not be paid out of the cash and current assets of the District, and <br />(iii) costs of issuance. In addition, the City has projected that, <br />over a ten year period, beginning in the Spring of 1992, it will spend <br />$556,246.00 more for providing services and improvements within the <br />District than it will receive from sales, use, and ad valorem taxes <br />paid by District residents as a result of annexation. One half of that <br />projected amount ($278,123.00) will be added to the principal of the <br />new debt, in addition to the amounts specified above and will be used <br />to partially pay for the obligations agreed to by the City. This new <br />debt will be issued in the name of the District, and it will be a <br /> <br />. ~llId <br />