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" Frank M. Akers, P.E., Chief Project Planning and Construction Section Page 2 Improvement of our water treatment process is our next focus, Converting our filtering system and upgrades at the treatment plant subtotal another $159,00. Once we have treated the water, we will move on to the storage aspects that need to be addressed. Renovation of our unused storage tank along wi th piping and other improvements subtotal $97,900. Total construction costs of $609,300, plus 15% for legal and engineering fees bring the project cost to $700,695. Based on a proposed $320,000 loan, combined wi th a grant for $300,000 and coupled with our $80,000, the first phase of the project could be completed. We have in fact proceeded beyond the feasibility study and ordered thl~ design work for our treatment plant. This project is that urgent to our communities existing needs. Final design for converting our filtering system is in progress by Westwater Engineering. The design is aimed at improving the quality of water as well as the capacity. Existing needs far outweigh any growth issues. However, the study addresses those concerns as well. In the two years of the tap moratorium our needs have increased. Mailbox rentals have increased in our service area by 28 boxes constituting an increase of approximately 10 %. The School District literally patch worked hOUSing together for the four teaching posi tions it recentl y filled. The major concern in attracting quality education was the housing shortage. The high school graduating classes, along with new residents moving in, has made natural growth inevitable. In some cases, families have even doubled up in single family residences. While our need is urgent, our financial constraints are obvious. The 1990 census outlined that. Norwood's per capita income is approximately $10,507.00. We would like this to be weighed in the decision of the loan interest rate. Actually, we are requesting a 0% loan to meet our needs should you regard this proposal. A 5% loan woul d increase our existing debt repayment of $700,000 by approximately $25,000 per year. We are prepared to increase our user fees by approximately $4.00 per month per existing tap to meet this payment. With Phase II and III in our future goals, and the burden of our existing $700,000 debt, we request that you consider the lowest interest rate available. A proposal is currently underway to combine the Town of Norwood and the Wright's Mesa Rural Water users into a single system entity. An actual agreement is pending, and details are being worked out.