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CHAPTER 4. ENVIRONMENTAL CONSEQUENCES W::W~~=:::m~::,~;.::r:t";:;mwr.-:::m::$:<<::::::~W.0:m:;:;:.r.;:::W::;:::,~::&:::.;:;:m::::::;""t;...~w:.-s;~w.$1*.S;~:;:::~!@M.x~:::<.:;.:;:::x;,;;::::~>..::r:3;:,-t.,,~:::::<<:;:x::-;.s:;;,-:,:::;w:::.:.m:;:;w.w;:;~~:;;.~:r,; 002867 Neither Mt. Werner nor the City would funher increase water rates or increase propeny taxes to pay for the proposed expansion. Mt. Werner would pay for its portion of the proposed $6,000,000 expansion through user fees and a City rebate and the City would likely pay for its share through general fund sales tax revenues. For both Mt. Werner and the City, these funds would be available for other purposes if the No Action Alternative is selected. Mt. Werner would likely utilize the money for the development of an alternate water supply source and/or the construction of other capital improvement projects. Since the City's portion of the payment would likely be coming from the general fund, the City Council would re-prioritize its capital improvement projects. The money would not necessarily go towards water utility projects (Birch, 1992d). 4.4.2.2 Alternetive B . Proposed Raervoir Expansion Socioeconomic Climate - As discussed in Section 3.4, water availability in Steamboat Springs has not promoted or prevented growth in the community. Rather, it has enabled normal growth panerns 10 proceed. Under Alternative B, this trend would continue since water would not be a limiting resource to growth. Public Safety - As discussed in Section 4.2, under the Proposed Action, an early warning system would be installed to warn the community in the event of a dam failure. Furthermore, a remote control system would be installed to allow the City to respond to uninitiated changes in dam operation. Potential flood impacts associated with Alternative B are greater than those associated with the No Action Alternative as discussed in Section 4.2, but the likelihood of dam failure would be less, based on design and modern construction methods. Water Utility Rates - As discussed previously, Mt. Werner and the City have changed to a metered rate structure. No further rate changes beyond those discussed are anticipated for either the City or Mt. Werner under Alternative B. Reservoir Financing - Under the proposed reservoir financing strategy, discussed in Section 3.4, Mt. Werner would pay for 75 percent and the City would pay for 25 percent of the total reservoir expansion costs of approximately 56,000,000. This equates to a unit cost of approximately $2,600 per AF of storage. The water storage capacity received by each entity would be proportional to the share of the project for which each entity pays. Neither Mt. Werner nor the City would increase water rates beyond the current rate changes or increase property taxes to pay for the proposed expansion. Mt. Werner would pay for its ponion of the proposed $6,000,000 expansion through user fees and a City rebate and the City anticipates that it would pay for its share through general fund sales tax revenues. Mt. Werner would fund approximately 23 percent ($1,370,000) of the total cost up front from its reserve funds. The remainder of the project ($4,630,000) would be funded with a 20-year loan from the Colorado Resources and Power Development Authority. Mt. Werner would begin to repay the loan immediately, while the City would begin to repay their share of the loan in eight years. This arrangement is appropriate since Mt. Werner's need for storage capacity is immediate and the City does not need additional storage capacity in the near future. ~::.:~~~~~:~~::::;<xx~m~;:::::<<.w;m;.::~"<;"~~<:>;<::x,-:-x::;.':>;<::;:;:;:~;:;::'R:::;::;:"0;:;:-;.:;:,:m::;;.x",'V0:::.I;.:~.:m<:;..:.~~ &plember 1993 Page 4.13