City Council Minutes 2003 05 20 - Laserfiche WebLink

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Louisville City Council Meeting May 20, 2003 Page 3 of 11 ORDINANCE NO. 1420, SERIES 2003 - AN ORDINANCE AUTHORIZING A LOAN FROM THE COLORADO WATER RESOURCES AND POWER DEVELOPMENT AUTHORITY TO FINANCE THE ACQUISITION OF WATER RIGHTS FOR IMPROVEMENTS TO THE CITY WATER SYSTEM AND TO REFINANCE CERTAIN OUTSTANDING OBLIGATIONS FOR WATER SYSTEM IMPROVEMENTS; AUTHORIZING THE FORM AND EXECUTION OF THE LOAN AGREEMENT AND A GOVERNMENTAL AGENCY BOND TO EVIDENCE SUCH LOAN; RATIFYING PRIOR DETERMINATIONS OF THE CITY COUNCIL; AND PRESCRIBING OTHER DETAILS IN CONNECTION THEREWITH - 2ua reading - public hearing (advertised Daily Camera 5/10/03) Davidson called for City Attorney introduction. City Attorney Sam Light read Ordinance No. 1420, Series 2003. Davidson called for Staff presentation. Finance Director Charlene Laus explained Ordinance No. 1420, Series 2003, authorizes a loan agreement with the Colorado Water Resources and Power Development Authority for the purchase of water rights and other improvements to the City's water system. The interest rate will not exceed 5.25%, (the anticipate rate is between 4.50% and 4.75%), with a maturity date not later than December 1, 2024, and the principal amount not to exceed $14,2000,000. She noted the amount is higher than the original request of $12,500,000, due to Authority extending the option of refinancing the 1983 loan. The projected cash saving over the life of the loan for the refinancing is approximately $80,000. The City is not obligated to take advantage of the option, however, the Finance Committee recommends the Colorado Water Conservation Board loan be refinanced. Davidson opened the public hearing and asked if anyone in the audience wished to speak for or against Ordinance No. 1420, Series 2003. There were no comments. COUNCIL COMMENTS Davidson asked Public Works Director Tom Phare what the funds would be used for. Phare stated the money is proposed for the purchase of additional units of CBT water and for pipeline improvements from Marshall Lake to the golf course and to Harper Lake. Keany asked when the Windy Gap funding project would occur and whether additional funds would be borrowed. Phare stated the money has to be deposited with the Northern Colorado District, followed by a 3-5 year permit requirement process. He stated the funding depends on revenue from water sales and tap fees. Finance Director Laus noted the Windy Gap project was included in the 5-year capital projects projections. Keany asked for clarification on the 20-year loan debt service. Laus stated the debt service for the City would be approximately $950,000 a year.