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<br />.. <br /> <br />~ <br /> <br />Based on the purchase of 47.4 acre-feet of water for delivery through the Water District system, <br />the Town will need to purchase 68 units of the Colorado Big Thompson (CBT) project. The <br />CBT project has had a firm yield over the past 40 years of 0.7 acre-feet annually. The current <br />market value ofCBT shares is $1800 per share. The Town may pursue the purchase of North <br />Poudre Irrigation Company (NPIC) shares which has four units of CBT per share. Currently the <br />market value ofNPIC shares is around $6500. For the purpose of this evaluation the market <br />value of CBT at $1800 has been used. Adding these costs the estimated total project capital cost, <br />including 10% engineering and legal fees, is $464,338. <br /> <br />In order to estimate the increase in monthly water bills for the Town, the annual costs for the <br />project were estimated. Based on a 4.5% loan and a 20 year loan period the annual cost to Nunn <br />will be $35,697. The other annual costs associated with the project are the Water District fees <br />and the CBT assessments. <br /> <br />A commodity fee of $0.60 per 1000 gallons is charged for water delivered through the Water <br />District system. In addition, a demand fee is charged based on the peak daily demand. The <br />demand fee was estimated assuming 90 gallons per minute delivered from the Water District <br />system. Well No.3 will provide the additional 10 gpm required during peak demand periods. <br /> <br />The current number of paying water service accounts is 141. The projected increase in monthly <br />water bills will be an average of $39 per service. Of the $39 monthly increase, about $18 will be <br />for annual fees to the Water District and water rights assessments. The remaining $22 will be <br />used for loan payments. The current average water bill for 1994 and 1995 is around $22. <br />Therefore, the new monthly water bill will average about $61 during the 20 year period the loan <br />is being paid. <br /> <br />VII. CONCLUSION <br /> <br />In the previous feasibility study it was determined there are no alternatives available to the Town <br />ofNunn to obtain a legal water supply, with good water quality, with the exception of connecting <br />to the Water District. Although this project will require signifIcant increases in the Town's water <br />rates, the Town will be securing a good quality and quantity of potable water for the future. <br /> <br />5 <br />