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<br />. <br /> <br />. <br /> <br />. <br /> <br />STATE at COLORADO <br /> <br />- <br /> <br />Colorado Water Conservation Board <br />Department of Natural Resources <br />721 Centennial Building <br />1313 Sherman Street <br />Denver, Colorado 80203 <br />Phone: (303) 866.3441 <br />FAX, 130,1 866.4474 <br /> <br />Roy Romt'r <br />Governor <br /> <br />MEMORANDUM <br /> <br />J~mes S. Lochheild <br />Executive Director, DNR <br /> <br />OMiesC. Lile, P.E. <br />Director, (WeFl <br /> <br />TO: Colorado Water Conservation Board Members <br /> <br />FROM: John Van Sciver <br /> <br />DATE: July 21, 1997 <br /> <br />SUBJECT: Agenda Item 15a., July 21-22, 1997, Board Meeting-- <br />Rodney Preisser <br />Approval of a Construction Fund Loan in maximum amount of $90,000 to <br />Purchase Water Rights. <br /> <br />Revised Staff Recommendation #2, concerning loan terms. <br /> <br />2. The financing terms shall be at an annual percentage rate of 4.1 %, for a <br />duration of 30 years. <br /> <br />The rate was determined as follows: <br /> <br />550 acre feet of augmentation water will be purchased, of which 400 acre feet (73 %) will be <br />sold immediately for commercial use, and 150 acre feet (27 %) will be retained for agricultural <br />use. <br /> <br />The CWCB standard commercial rate is 5.25%. The CWCB standard agricultural rate IS <br />3.75%. <br /> <br />A rate reduction of .75 % is applied, because of the benefit to the State in settlement of all <br />lawsuits in the Horse Creek Basin. <br /> <br />The rate for the commercial part of this loan becomes: 5.25% - 0.75% = 4.5%. <br />The rate for the agricultural part of this loan becomes: 3.75% - 0.75% = 3%. <br /> <br />The final rate is: (0.73)(4.5%) + (0.27)(3%) = 4.1% <br /> <br />. C:\wp51\PROJ-NEW\lSaREV.jul <br />