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<br />80720. The Town's Water Fund revenues have increased approximately $65,000 since <br />the receipt of this loan, and fund revenues indicate strong ability to repay the loan at <br />current user rates. <br /> <br />Alternative Financing Considerations: The Town of Akron originally planned on <br />funding this project over time out of our own reserves, but drought conditions have made <br />the need greater than anticipated more quickly. Funding was requested from the Y-W <br />Electric Association's revolving loan fund which was created by the payments being <br />made by the Town of Akron on our loan. The loan fund did not have adequate money <br />available for this entire project. <br /> <br />Collateral: The Town of Akron would pledge the project itself and water revenues for <br />the CWCB Loan. We are seeking a parity agreement from Y-W Electric Association, <br />Inc. on that loan to allow this. Three years remain on the Y - W loan. The water fund has <br />sufficient revenues with our current rate structure to adequately fund both loan payments, <br />provided Y - W will allow parity. <br /> <br />Economic Analysis <br />The economic benefit ofthis project is very great. Without this project, it is uncertain <br />whether the Town of Akron can continue to provide an adequate, reliable source of water <br />to both our residential and commercial water customers. Drawdown of our wells in this <br />year of drought has been great, and we need these two new wells for the continued <br />economic stability of our community. <br /> <br />In addition to meeting our current needs, these wells also allow for modest growth, both <br />residential and commercial, which to this point has not been possible. <br /> <br />The generator for backup power supply will allow businesses relying on a steady supply <br />of water in time of electrical outages to continue to operate, benefiting not only the <br />businesses themselves, but everyone who depends on those businesses. <br /> <br />Social and Physical Impacts <br />The project is not expected to have any significant social impacts, as it allows for the <br />continued operation of an existing water system. <br /> <br />The physical impacts of the project are minor. The wells themselves are both located in <br />undeveloped pasture land, and the transmission lines will go through county road rights- <br />of-way and across pasture land. <br /> <br />Useful Life of Project <br />The useful life of this project was estimated using two sets of criteria. The first is the <br />historical population growth of the Town of Akron, which has been one-half percent <br />annually. The second is projected commercial growth. With our current production <br />capabilities, the Town has turned away several commercial enterprises which would have <br />placed demand on our water system which was beyond our capacity. We expect some of <br />these commercial developments to now be possible, and have estimated commercial <br /> <br />8 <br />