C153664 Contract

• Contract/PO #: C153664
• Contractor Name: Fort Lupton, City of & Fort Lupton Water Utility Enterprise
• Contract Type: Loan
• Water District: 1
• County: Weld
• Bill Number: HB 93-1273
• Loan Projects - Doc Type: Contract Documents

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COLORADO WATER RESOURCES &
POWER DEVELOPMENT AUTHORITY

Logan Tower Bldg. - Suite 620. 1580 Logan Street, Denver, Colorado 80203
303/830-1~50 FAX [phone]

November 2, 1993

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This letter is a "follow-up" to our telephone conversattcg, of last week
concerning Fort Morgan's (City) request for funding from the CWCB-for a portion
of its share in the Southern Water Supply Project. As you are aware, the statute
requires that the Authority must fjrst determine that funding cannot be provided
under its programs before an entity can receive funding from the CWCB.

Mr. Daries "Chuck" Lile
Colorado Water Conservation Board
1313 Sherman Street, Room 720
Denver~ado 80203

Dear Mr:.-Hfe:

As of this date, the City has not submitted an application to the Authority.
Therefore, a determination for Authority funding cannot be made with one hundred
percent certainty. However, on November 1st, I spoke with the City's investment
banker about the City's funding needs for 1994. It is estimated that the City
needs about $2.5 million for next year. As a Category 2 borrower under the
Authority's Small Water Program, the City would be eligible for $2.55 million.
It is highly probable that the City would qualify as a Category 1 borrower and
therefore, be eligible for a much higher loan amount. It is my understanding
that the City will be submitting a loan application to the Authority by the end
of thi s week.

In order to overcome many of the scheduling problems with prospective borrowers
that have projects ready to go, the Authority is considering the establishment
of a line of credit (LOC) or direct loan program. The LOC or direct loan approach
would permit the Authority to meet the project funding needs of its borrowers
while allowing us to put together larger, more cost effective bond financings.

Prior to the Authority's consideration of the City's project financing and LOC
or direct loan at the December 8, 1993 meeting, several requirements must be met.
The two most critical are:

1. Approval by the bond insurer and

2. Creation of an enterprise fund to satisfy TABOR requirements_

Upon receipt of the City's application, we will be working with the City to
proceed as quickly as possible to meet these requirements. Over the next five
weeks, the Board of Directors will be kept apprised of the progress in meeting
these requirements. This, however, does not guarantee that the Board will
approve the project on December 8th.

APPENDIX D