Finance Committee Agenda and Packet 2021 01 25

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Longmont is not participating in Group Financing due to charter restrictions specific to their City. Central Weld is a small portion of the project and is paying cash for their share. Updated Contract Terms New information provided by Northern Water Conservation District includes a clause in the Contract that provides for a member to leave the Group Financing within 3 months of a Notice of Provision to complete financing documentation. It is currently anticipated that this Notice of Provision could take place Q4, 2020 and a final decision will need to be made in Q1, 2021. The additional clause within the Contract provides that: Until the date noticed by the WGFP Enterprise under this Section 6.2.1.1, [Actual Allottee Name*] may, with the WGFP Enterprise's written consent and without the need to amend this Contract under the terms of Section 5.7, modify its chosen means of payment of its Capital C&E Funding Obligations for Initial C&E, including its proportional amounts between a Capital C&E Funding Cash Payment and participation in a WGFP Financing, and upon such modification the WGFP Enterprise shall update Exhibit A to the WGFP Allotment Contracts. Before the date of sale of a WGFP Financing for Initial C&E other than the CWCB Loan, the WGFP Enterprise will provide written notice to [Actual Allottee Name*] setting forth the date by which [Actual Allottee Name*] must finalize its payment method for Initial C&E, which date shall be no less than 3 months after the date of notice unless [Actual Allottee Name*] otherwise agrees. Any modification of payment method for Initial C&E after the date provided in the notice shall require a contract amendment under the terms of Section 5.7. Approval of the Contract does not exclude the City from continuing to explore its own financing of its share of the project which is currently estimated at $20 million. However, if the City does not choose to approve the Contract it will exclude its ability to participate in Group Financing in the future leaving its only choice to be self-financing. By leaving the City's options open the City allows itself to continue to get additional information to ensure it is making the best long-term financing decision. Financing Scenarios Staff reviewed 8 scenarios in attempts to determine the best value in regards to combinations of financing alternatives. Those scenarios include 4 scenarios that provided for a $2,500,000 down payment and 4 scenarios that provided for no down payment. Within each of those categories staff ran a 20-year and 30-year amortization analysis with payment schedules that reflected a fixed payment over the life of the bond and an interest only for 5 years and then principal and interest payments thereafter over the life of the bond. These scenarios can be visualized as follows (detail from Jim Manire, city's financial advisor, attached): owe