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<br />Tap fees, payable over 7 years, will meet the loan repayment obligation. The DWCD has <br />applied for a $300,000 grant from the Department of Local Affairs. If the grant is <br />awarded, the loan obligation to the CWCB will be reduced, and only 200 taps will be <br />needed to fully pay for the project. <br /> <br />There will be a savings to the residents of Dove Creek when the Secondary Water supply <br />system is operational (approximately $116 per year, conservatively). However, the real <br />benefit of the project is in the value it adds to the residential properties in the Town of <br />Dove Creek. As with other parts of rural southwest Colorado, when a rural tap or <br />secondary water supply system is developed property values increase. At the present time <br />residents in Dove Creek hesitate to use their treated water supply at $2.40 to $3.00 per <br />1000 gallons. The new system will be more affordable, making it possible for residents to <br />enhance the landscape of their property. That increases the value of their property, yet the <br />entire Town of Dove Creek benefits. <br /> <br />Conclusions <br /> <br />The feasibility of the Dove Creek Secondary Water Supply System is dependent <br />upon securing a minimum of 200 separate tap agreements from Dove Creek residents. <br />The DWCD and the residents of Dove Creek who execute a Tap Agreement are taking <br />the risk that we'll be able to secure an additional 107 taps. The total of307 taps is needed <br />to fully repay the CWCB construction loan for the project. <br /> <br />Update: The DWCD has begun executing Tap Agreements, As of July 11,2003 <br />DWCD has secured 75 Tap Agreements. Several meetings in Dove Creek are planned to <br />continue the sign-up process. The next meeting is set for July 17, 2003. <br /> <br />The need for the Dove Creek Secondary Water Supply System is clear, It provides <br />a much-needed source of affordable water for residential lawn and garden use, which <br />adds tremendous value to the Town of Dove Creek. The project will be funded through <br />tap fees, but given the difficult economic times acing the agricultural-based communities <br />in southwest Colorado, a construction loan is needed to begin the project. <br /> <br />The support of the CWCB, the Department of Local Affairs, the Southwestern <br />Colorado Water Conservation District, and the support of residents of Dove Creek is <br />critical to the feasibility of the project. <br /> <br />6 <br />