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<br />Pagosa Area Water & Sanitation District <br />Page two <br /> <br />. <br /> <br />additional mill levy of 20.76 mills for general obligation bond issues, and currently has <br />$4,850,000 in bonds outstanding. User revenues have shown a steady annual increase <br />of 2 .:!:..%. <br /> <br />The District proposes to borrow $6,982,000 from the CWCB construction fund <br />at 5% for 25 years. The yearly payment would be $625,318. Design and construction <br />would commence in 1996 with loan payback starting in 1998 to coincide with <br />scheduled retirement of the $4,850,000 outstanding bonds. It is anticipated that only <br />minimal (less than 2%/year) rate increases would be required to payback the <br />requested loan. <br /> <br />Recommendations <br /> <br />It is recommended that this project be authorized by the General Assembly in <br />the Amount of $6,982,000 subject to the proposed terms of financing set forth above <br />and subject to the District demonstrating to the Board's satisfaction that it can meet <br />its repayment obligations. <br /> <br />GKE/ gl <br /> <br />. <br /> <br />gl0369.rpt <br /> <br />. <br />