A ordinance of the Board of Trustees for the Town of Deer Trail, Colorado approving the design & engineering loan agreement between the Colorado water resources and power development authority and the Town of Deer Trail, acting by and through its water activity enterprise and authorizing the Mayor and the Town administrator to execute related documents.
Whereas, the Town of Deer Trail, Colorado (the "Town"), is a political subdivision of the State of Colorado (the "State"), duly organized and existing as a statutory city under the laws of the State; and
Whereas, the members of the Board of Trustees of the Town (the "Board") have been duly elected and qualified; and
Whereas, the Town has applied for funding from the Colorado Water Resources and Power Development Authority (the "CWRPDA") for the design and engineering costs associated with the water treatment, distribution, supply and storage improvements to improve water quality and distribution ("Project")
Whereas, the Board has determined that in order to finance all or a portion of the cost of the Project, it is necessary and advisable and in the best interests of the Town (i) to enter into a loan agreement with CWRPDA (the "Design & Engineering Loan Agreement"), pursuant to which CWRPDA shall loan the Town an amount of not to exceed $250,000 without any interest and with the principal to be forgiven by the CWRPDA (the "Design & Engineering Loan") for such purposes, and (ii) to issue a governmental agency bond (the "Design & Engineering Bond") to CWRPDA evidencing the Town's obligations under the Design & Engineering Loan Agreement; and
Whereas, the loan contemplated in the Design and Engineering Loan Agreement will be 100% forgiven at the time of the loan closing and will not constitute a multi-fiscal year obligation pursuant to TABOR; and
Whereas, the Board of Trustees finds and determines that it would be in the best interests of the Town and its residents to enter into the Design & Engineering Loan Agreement.
Now, therefore, be it ordained by the Board of Trustees of the Town of Deer Trail, Colorado:
Section 1.
The Design & Engineering Loan Agreement between the Colorado Water Resources and Power Development Authority and the Town, a copy of which is attached hereto and incorporated herein as Exhibit A, is hereby approved and adopted, and the mayor is authorized to execute the same on behalf of the Town.
Section 2.
The Mayor and the Town Administrator are further authorized to execute any related documents required to close on the loan.
Introduced, read, adopted, and ordered published this 12th day of June 2018.
This Ordinance shall become effective thirty days from publication.
By: James Johnson, Mayor
Town of Deer Trail, Colorado
Attest: Candice Reed, Town Clerk