PROJ02008

• Contract/PO #: FS0073FX
• Contractor Name: Lamar, City of
• Contract Type: Grant
• Water District: 0
• Loan Projects - Doc Type: Feasibility Study

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municipality ought to relate to the current income levels, as well as the municipality's
potential for future economic development. These are difficult issues to plan for.
However, the following observations can be made.

The median household income for Lamar in 1999 was $28,660, compared to a state
figure of $47,203. The estimated mean retirement income for Lamar is $11,013,
compared to a state figure of $19,342. Overall per capita income for Lamar is $14,150,
compared to a state figure of $24,049.4

Although there are no reliable figures available that would represent comparisons of
these income figures to the cost of living in Lamar, certain census data related to
selected monthly owner costs as a percent of household income may indicate a slightly
greater degree of disposable income in Lamar, compared to the state as a whole, after
housing costs are accounted for. Table 2 shows some comparable figures for Lamar
and the state on this issue. Table 3 shows that the current sales tax rate in Lamar is
somewhat lower than in communities of comparable size.

Table 2. Selected Monthly Owner Costs as a Percentage of Household Income
in 1999

City of Lamar

State of Colorado

Less than 15.0 percent of income

47.2 percent of
households

32.2 percent of
households

35.0 percent or more of income

11.9 percent of
households

16.6 percent of
households

Although local real estate agencies undoubtedly have more reliable perspectives on
housing in Lamar, the 2000 Census reports about 91 percent of the housing in Lamar as
being occupied. This compares favorably to a state average of 91.7 percent. In addition,
owner-occupied housing in Lamar is very comparable to the state average; 66.2 percent
as compared to a state average of 67.3 percent.

It is believed that an excessive amount of rental property could potentially have an
adverse impact on the use of a secondary system.5 A high rate of rental property does
not appear to be characteristic of Lamar. Although housing stock might be somewhat
older in Lamar, and mobile home stock may be somewhat greater than the state
average, the overall housing indicators for Lamar are not appreciably different from the
state averages. If they were dramatically different from the state averages, there might
be some reason for more carefully assessing what affects this might have on the use of
the secondary system.

4 Comparable figures for Pueblo County are: 1. Median household income ($32,775), 2. Mean
retirement income ($16,958),3. Overall per capita income ($17,163).
5 These are some of the issues associated with secondary water systems that have not been
researched yet.
Aqua Engineering, Inc.
and Colorado State University
May 19, 2004

Secondary Supply Feasibility Study
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