PROJC00983

• Contract/PO #: C153663
• Contractor Name: Hudson, Town of & Hudson Water Fund Entrprise
• Contract Type: Loan
• Water District: 1
• County: Weld
• Bill Number: SB 78-69
• Loan Projects - Doc Type: Contract Documents

'"~ -.....
""1

,.",

of Berthoud, Fort Lupton, Fort Morgan, Old Town Superior, and
Wiggins, and the Towns of Erie and Hudson, Colorado to enable their
participation in the Project if the Colorado Water Conservation
Board determines, in its sole discretion, that said project and the
participation of these entities in said project is technically and
financially feasible, that financing through the Colorado Water and
Power Development Authority is not available, and that appropriate
repayment terms can be established with each entity; and

WHEREAS, at a regular meeting of the Colorado Water
Conservation Board held in Denver, Colorado on November 9,1993, the
Board approved a resolution which revised the terms of the loan to
an interest rate of 2% for a period of 40 years; and

WHEREAS, the total cost for the Borrower to participate in the
Project has been estimated by the District to be $1,273,000; and

WHEREAS, based on the availability, pursuant to HB 93-1273,
of the sum of $7,050,000 to entities eligible thereunder, and based
on the fact that of the entities eligible, only the Towns of Erie
and Hudson and the City of Fort Lupton have requested loans from
the Colorado Water Conservation Board, it has been determined that
a loan in the amount of $1,273,000 is available toward the total
cost of the Borrower's participation in the Project; and

WHEREAS, by letter dated November 2, 1993, the Colorado Water
and Power Development Authority determined that it is not available
as an additional source of funds to the Borrower for participation
in the Project. This letter is attached to this contract as
Appendix D; and

WHEREAS, pursuant to ~ 31-15-302 et sea. ,C. R. S. , the
Borrower has authority to contract to borrow money provided that a
resolution has been duly adopted by its Town Board of Trustees
authorizing repayment of the loan to the State according to the
terms of this Contract; and

WHEREAS, the State understands that the repayment of the funds
loaned, including interest thereon, will corne from revenues pledged
for the repayment thereof from water user charges or fees and that
this obligation does not constitute a debt of the Borrower within
the meaning of any constitutional or statutory limitations; and

WHEREAS, it appears to the parties that with the creation of
a security interest in the revenues and the Borrower's interest in
the Allotment Contract pledged herein, and the additional terms and
conditions provided herein, the flow of revenue to repay the
obligation is reasonably secure.

NOW,
covenants
follows:

THEREFORE, in consideration of the mutual and dependant
herein contained, it is agreed by the parties hereto as

A.

The State agrees as follows:

Page 3 of 12 pages

- ~