A public hearing will be held during the City Council meeting on September 21, 2010 regarding an amendment to a 2003 Water Loan.
The City submitted a letter to the Colorado Water Resources & Power Development Authority requesting an amendment to the terms of the 2003 Water Pollution Control Revolving Fund Loan Agreement. Specifically, the City wishes to pledge, and take into account for purposes of issuing additional obligations, revenue from both its water and sewer operations for both loans. Although the City manages its water and sewer operations separately legally they comprise one fund.
Due to a decrease in the level of development fee revenue experienced in 2009, the City is unable to meet the requirements for issuance of additional obligations on parity with the 2003 loan. In order to maintain consistency with the terms of all outstanding water and sewer debt and avoid parity issues, the City believes the best solution is to offer the Colorado Water Resources & Power Development Authority a pledge of revenue from both water and sewer operations and to base future parity borrowings on the revenue coverage of the combined water and sewer enterprise.