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<br />According to Alan Matlosz of George K. Baum, the town's financial consultant for this <br />project, the bond documents for the water plant debt, held by G.M.A.C., does not include <br />language requiring parity for future indebtedness. <br /> <br />Collateral: As security the Town of Kremmling will pledge revenue from an increase in <br />water rates. <br /> <br />Economic Analysis <br /> <br />The economic benefits to the town are substantial while losses are significant. The town <br />has experienced watering restrictions most every yc~ar for the past 10 years. This year the <br />drought necessitated severe watering restrictions. As a result, town green spaces were <br />dried up and sustained substantial damage. Numerous residential and business properties <br />did not irrigate at all therefore drying up their greenery and causing substantial damage. <br />The result is decreased property values particularly for those desiring to sell their <br />properties. In addition the inability to provide water for both the short and long term has <br />hindered development. The town cannot and will not grow until the water supply is <br />firmed up and proves reliable. <br /> <br />Social and Physical Impacts <br /> <br />Positive social impacts will occur by building this project. Once completed the town will <br />rehabilitate its parks, playgrounds, sports fields, and open spaces. In addition the town <br />will finish development of a partially completed sports complex. The rehabilitation ofthe <br />parks, playgrounds, etc., then will provide opportunities for the citizens of and visitors to <br />Kremmling to enjoy the outdoor amenities deemed important as quality of life issues. <br /> <br />The physical impacts are minimal as the project location is outside the town boundaries <br />located on ranch property distant from any residential properties. Outside of two small <br />structures there will no visible evidence of the project. Revegetation along the pipeline <br />route will significantly reduce evidence of construc:tion. <br /> <br />Conclusions <br /> <br />1. The Town ofKremmling is a municipality with the statutory authority to enter <br />into a contract with the CWCB for the purposes of obtaining a loan. <br /> <br />2. The project would provide the ability for the town to ensure 10ng-telID water <br />supplies for its residents. <br /> <br />3. The total estimated project costs are in excess of$1.7 million and financed <br />through a combination of grants, loans, contributions and direct municipal <br />participation, including cash and in-kind services. The town anticipates the <br />CWCB loaning the town $1,000,000. <br /> <br />4. The project is technically sound and financially feasible. <br /> <br />10 <br />