Laserfiche WebLink
<br />\ <br /> <br />Agenda Item 109. <br />January 24, 1996 <br /> <br />2 <br /> <br />DISCUSSION <br /> <br />(a) General <br />The proposed project will provide a capacity of 1200 GPM (2.67 CFS) to satisfy projected need <br />based on maximum build-out, most of which was approved over a decade ago. It will also <br />provide water for fire protection. The pipeline will have an ability to supply up to 5.3 ac-ft of <br />water per day (1931 ac-ft per year.) <br /> <br />The Town would like to complete the project in the spring of 1996, to assure an adequate water <br />supply for the high demand summer months. <br /> <br />Demographics have shifted in the past 5 years, and New Castle has become home to many who <br />work in the more wealthy communities of Aspen, Glenwood, and Vail. In fact, much of the <br />housing now being built in New Castle is classed as low income or "affordable" housing. <br /> <br />The Town, the CWCB Staff, and Staff from the Colorado Water Resources and Power <br />Development Authority have discussed the Town's overall funding needs. It has been agreed <br />the CWCB will offer financing for the raw water portion, and the CWR&PDA will offer <br />financing for the drinking water portion of the Town's overall funding needs. This is in <br />accordance with MOU between the CWCB and the CWR&PDA. <br /> <br />(b) Collateral: <br />The Town of New Castle has a separate water enterprise which receives revenues from its water <br />customers. The CWCB can take a collateral interest in this stream of revenue. <br /> <br />The Town's Water Enterprise could provide one annual payment (approximately $17,900), in <br />the form of a CD, as additional collateral. <br /> <br />The Town's Water Enterprise also has certain land and water rights assets which could be <br />pledged as additional collateral. This would require a vote of the people, at the earliest date of <br />November 1996, and would delay the project. <br /> <br />(c) Financial Condition: <br />The Town has 2 small loans totalling only $77K. The Town is current on all payments. <br /> <br />The new CWCB loan will have a payment of about $17,900 per year, or $2 per month, for the <br />736 existing customers. <br /> <br />Plans for water metering ($55K) and water plant upgrades ($486.4K) in the next 5 years could <br />add approximately $500K in additional debt for the Town's Water Enterprise. The annual <br />payment on this new debt would be about $32,500, and would amount to about $3.70 per month, <br />per customer. <br />