PROJC01567

• Contract/PO #: C150010
• Contractor Name: Columbine Ranches Property Owners Association
• Contract Type: Loan
• Water District: 0
• County: Adams
• Bill Number: SB 99-173
• Loan Projects - Doc Type: Feasibility Study

Table 1 is a summary of the financial aspects of the project. The actual loan amount wil1 be determined
after the Association identifies senior rights to purchase, and enters into a contract to purchase those rights.
As shown in Table I, annnal assessments may increase from $400 per member (lot), up to $530 per
member with a Construction Fund loan of$237,750, and up to $611 per member with a loan amonnt of
$305,250. This represents a monthly assessment of between $44 and $51 per lot, an increase over current
levels of between $11 and $18 per month.

Project Cost $317,000 to $407,000
Loan Amount $237,750 to $305,250
Number ofMemhers (Membership Units or Lots) 54
Current Assessment per Memher (Lot) $400
Future Assessment per Member (Lot) $530 to $611
Future Assessment per Member, per Month $44 to $51
Annual Cost per acre-foot (120 acre-feet total yield) $239 to $275
MHI Adams County, 1990 (1990 State Average - $30,140) $30,522

Table 1. Columbine Ranches POA Financial Summary

As mentioned above, water is used by the members (lot owners) for lawn and garden irrigation, stock
watering (primarily horses), and for fire protection. All uses occur within an existing subdivision located in
unincorporated Adams County. The median household income in the service area appears to qualify'for the
Municipal Standard Income Lending rate (see Table 1.)

The CRPOA has no existing debt. Income to repay the CWCB loan will come from an assessment increase
expected to range between $11 and $18 per month. This additional assessment represents a small part of
the disposable income for a middle income family. In addition, the Association's ability to enforce
payment of assessments through lien and foreclosure against individual properties aSSures that assessments
can always be collected.

As security for the loan the CRPOA will pledge revenues from assessments, as well as the water rights that
are purchased with the CWCB loan.

Recommendation
Staff recommends a loan not to exceed $305,250 to the Columbine Ranches Property Owners Association
for 75% of the costs to purchase water rights for augmentation, and for directly related costs of engineering
and construction associated with actually placing these rights into use for augmentation. The recommended
term of the loan is 30 years and the lending rate would be that rate approved by the Board for Municipal
Standard Income borrowers in 1999. As security for the loan, the Columbine Ranches Property Owners
Association will pledge revenues from assessments as well as the water rights purchased with this loan.
The Association would be allowed the option of purchasing water rights with a bridge loan, and then
refinancing the purchase when the CWCB loan is approved.

Staff further recommends that final approval of the loan be conditioned upon acceptance of the project
(purchase of senior water rights for augmentation) and the associated financial obligations by a vote of the
members of the Association. Regardless of the water rights ultimately purchased, a written opinion of value
will be provided by the Borrower as a condition of obtaining the CWCB loan.

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