(Pursuant to Section 29-1-109, C.R.S.)
A RESOLUTION APPROPRIATING THE TRANSFER SUMS OF MONEY FOR EXPENSES
IN EXCESS OF AMOUNTS IN SPECIFIED ACCOUNTS FOR THE APPROVED
DRINKING WATER PROJECT FOR THE TOWN OF HOLLY, PROWERS COUNTY, COLORADO
WHEREAS, The Town of Holly Board of Trustees has deemed it in the best interest of the inhabitants of the Town to equip the community with an improved drinking water system. The Town of Holly Board of Trustees approved the Drinking Water Project for design, engineering, and construction phases. The approval of the project is revealed through Town of Holly board minutes; and
WHEREAS, The Town of Holly intends to finance the Drinking Water Project through the USDA loan/grant program, with an interim loan for soft costs and another for construction costs. The interim loan will be paid by USDA with a continuing loan through USDA to be paid back over a 40-year term at a rate of 2.125%; and
WHEREAS, The Town of Holly Board of Trustees has a $282,000 obligation to meet with the USDA budget, prior to utilizing the interim loans; and
WHEREAS, The Town of Holly Board of Trustees approves the transfer of budgeted funds between utility enterprises under the Proprietary Fund for the purpose of construction costs; and
WHEREAS, these funds will come from sewer, electric, water, and savings reserve accounts; and
WHEREAS, the project funds will be reimbursed.
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN OF HOLLY BOARD OF TRUSTEES OF HOLLY, COLORADO
Section 1. The Town intends and has reasonable expectations for reimbursement of the project costs incurred prior to the issuance of the loan reimbursement obligations which are projected to be at a maximum of $500,000.
Section 2. The reasonably expected maximum amount of the project loan obligations is $4,740,000.
Section 3. The Town of Holly Board of Trustees approves any funds needed to be transferred from one utility enterprise to another for the purpose of maintaining continued, consistent project activity to completion of the project, and the loan repayment would be “upon demand”, and paid by any of the utility enterprises, as needed.
Section 4. The funds transferred are expected to be reimbursed either through loans, grants or public billing rates.
Section 5. The reasonably estimated project completion date is at end of year 2030 which would make the 40-year USDA loan payoff to be paid no later than 2070.
Section 6. There will be reporting and accountability to the Town of Holly Board of Trustees of all monies that have been transferred at every monthly board meeting.
PASSED AND APPROVED this 3rd day of September, 2025.
/s/ Vance Brian, Jr., Mayor
ATTEST:
/s/ Cynthia S. Humrich, Clerk/Treasurer