TC Res. No. 2013-08 Consenting to UERWA Increase in Base RateTOWN OF AVON, COLORADO
RESOLUTION NO. 13-o8
SERIES OF 2013
RESOLUTION CONSENTING TO UPPER EAGLE REGIONAL WATER AUTHORITY
INCREASE IN BASE RATE
WHEREAS, Town of Avon ( "Town ") is a Participating Member in the Upper Eagle Regional Water
Authority ( "Water Authority "), via the Establishing Agreement, dated September 18, 1984, and the
Amended and Restated Master Service Contract ( "Service Contract "), dated January 1, 1998; and
WHEREAS, the Board of Directors of the Water Authority have proposed a Base Rate Increase to
accommodate the payment of Debt Service on the proposed Series 2013 Revenue Bonds in the
anticipated amount of $12,700,000 (the "Bonds "); and
WHEREAS, the intent of the Debt Service Base Rate is to appropriately distribute the cost of needed
improvements among the customers benefitting from these improvements, and to allow a reliable
and readily calculable revenue source as security for the Bonds, thus lowering the risk contained
within the Bonds and lowering the interest rate cost of the Bonds; and
WHEREAS, a Resolution of the Upper Eagle Regional Water Authority to Establish Debt Service Rate -
2013 Bonds was approved by the Water Authority Board for this purpose and is attached.
NOW, THEREFORE, the Town Council of the Town of Avon does herby consent to the proposed Base
Rate Increase as intended for implementation as of January 1, 2014; and as may be required to be
adjusted in future years subject to the following conditions:
1. The proceeds from the Debt Service Base Rate shall be used solely for debt service
payments for the bonds.
z. Water Authority staff, in preparing each annual budget, shall determine the Debt Service
Base Rate attributable to the Bonds for the subsequent calendar and budget year by
dividing the subsequent years' debt service by the current number of Single Family
Equivalent Units ( "SFEs ") being actively billed by the Water Authority; further divided by
12 months, to establish the amount of the monthly Debt Service Base Rate per SFE to be
effective the following year.
ADOPTED AND APPROVED by the Avon
ch Carroll, Mayor
\Q\ �
Clerk