Laserfiche WebLink
Mr. Eric Scott <br /> RE:Lamb Lakes Site M-2018-039 <br /> December 2, 2019 <br /> Similar to utilities, such as Denver Water, NWCWD provides services normally delivered by <br /> county and municipal governments. NWCWD has established a schedule of rates, fees and <br /> charges for connection to, and use of, their facilities. State law provides that, until paid, all such <br /> rates, fees, tolls and charges constitute a perpetual lien on and against the property served. <br /> Although primarily relying on water sales revenue for operations, NWCWD has the authority to <br /> issue bonds, condemn property, and levy property taxes. In 2019, S&P Global Ratings assigned <br /> their `AA' long-term rating to NWCWD's series 2019 water enterprise revenue bonds. <br /> According to S&P Global Ratings, the rating reflects, "in our opinion, the combination of very <br /> strong enterprise and financial risk profiles. The outlook is stable". According to S&P Global <br /> Ratings, the enterprise risk profile reflects their view of NWCWD's (1) growing customer base, <br /> (2) very low industry risk as a monopolistic service provider of an essential public utility, <br /> (3) sufficient water rights and a policy that requires developer dedication of water rights for new <br /> developments, (4) affordable average residential water rates, and (5) good operational <br /> management assessment. This rating is important because bond proceeds are used to fund <br /> capital improvements. <br /> NWCWD continues to show increases in water revenues and tap sales as a result of continued <br /> growth within NWCWD and Northern Colorado in general. With new development, NWCWD <br /> anticipates water demand to increase 9 percent annually over the next five years. The Lamb <br /> Lakes project is an important component of facilities necessary to meet the new demand. To <br /> complete projects like Lamb Lakes, the NWCWD five-year capital improvement plan for the <br /> period 2019-2023 includes a Water Resources budget estimated to exceed $27.6 million. <br /> The full S&P Global Ratings and financial audit reports are available upon request. <br /> Requested Action: Based upon the foregoing, NWCWD requests that it either be determined <br /> that no Financial Warranty shall be required of it under the exclusion for a unit of a municipality <br /> pursuant to Rule 4.1.2(2) or, alternatively, that it be granted an exemption from such Rule due to <br /> the foregoing reasons. We understand that other entities which are neither a unit of municipal or <br /> county government nor the State Department of Transportation have been granted an exemption <br /> or variance from the Financial Warranty requirement. We would request similar consideration <br /> for NWCWD at the Mined Land Reclamation Board meeting in December 2019. <br /> If you have any questions or need additional information regarding this application, please call <br /> me directly at (970) 227-2803. <br /> Sincerely, <br /> Blue Earth Solutions, LLC <br /> William Schenderlein, P.E. <br /> Project Manager <br /> Page 3 of 3 <br />