Arkansas - Las Animas Water System Improvements_App 2

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Water Supply Reserve Account - Grant Application Form Fonn Revised May 2007 3. Install meters on the remaining city facilities that are not metered. 4. Provide the means to bypass the existing 2.0 million gallon underground water storage tank, repair the tank and provide a means of pumping water from the tank to the distribution system within a long duration power outage. 5. Undertake distribution system improvements to eliminate old, deteriorating, undersized water mains and frequent pipeline failures 6. Replace existing and install new fire hydrants throughout the city for fire protection and system flushing. The overall goal of the project is to bring about the provision of acceptable quantities of water with good water quality and the ability to convey the water to the constituents in the community with a system that is reasonable to operate and maintain. These facilities will bring about economic development within the city and the surrounding region by the doubling in size of the Corrections Corporation of America (CCA) Correctional Facility, the local correctional facility. Currently, the city has secured a number of financial commitments fortheir project. They include a committed $800,000 in grant funds from the Colorado Department of Local Affairs through the Community Development Block Grant program, $812,000 in loan through the Colorado Water Resources and Power Development Authority's Disadvantaged Communities Program, a $10,000 grant from the Colorado Department of Public Health and Environment and a local commitment to the project of $400,000. This brings the total available funds up to $2,022,000. This results in the city falling short of its desired project budget of $2,472,000 by $450,000. In order to offset some of the funding deficit for the project, the city is hereby requesting $300,000 in the form of grant funds from the Roundtable. The $300,000 request is further broken down with $100,000 requested from the local basin (Arkansas Basin) and the remaining $200,000 through the state pool. Based on the nature of the funds thus far secured for the project, the city will be creating an enterprise fund with the water fund as described under TABOR. Such being the case, should the city receive state severance tax funds in excess of 10% of the funds total revenues, their enterprise fund status will be invalidated for that year. This will result in the city's inability to receive any additional grant funds within the water enterprise fund for that given year. Furthermore, in 1999 the voters of the City of Las Animas approved an ordinance authorizing the city, without creating any new tax or creating an increase in any current tax, to collect, retain and expend the full proceeds of all of the city's sales tax and use tax, nonfederal grants and other revenue from any other source, not withstanding any restriction on fiscal year spending, including without limitation of the restriction of Article X, Section 20 of the Colorado Constitution, effective January 1, 2000 for the use for expenditures for any lawful, municipal purposes. This action has effectively "debruced" the community. The action allows the city to retain excess revenues generated within the water fund, as well as to accept any state related grant assistance that may be available for the water fund as such activities have been preauthorized by virtue of the passage of the ballot question by the city's constituents. Location The City of Las Animas is located in southeastern Colorado's Arkansas Valley within Bent County. The general location of the community and its relationship to neighboring communities is shown on Figure 1 - General Vicinity Map. The planning area for the city's potable water system generally encompasses the incorporated area of the city together with a few, adjacent services around the periphery of the city together with the Bent County Correctional Facility (BCCF) owned and operated by the private Corrections Corporation of America (CCA). The general planning area is shown on Figure 2 - Area Map. Figure 2 has been taken from the Las Animas U.S. Geological Survey Quadrangle and depicts the street configurations within the community, general density of development within the area, general topography, U.S. Highway 50 and the Arkansas River. The scale of Figure 2 is approximately 1-inch equals 2,000 feet. The city's potable water service area lies with Sections 3, 9, 10 and 11, Range 52 West, Township 23 South of the 6th Principal Meridian. Additional future demands on the city's water system will be brought about primarily as a result of infilling within the corporate limits of the city as well as the proposed expansion of the F:\WPDATA\Las Animas\Water\05 WSlmp\Financial\Roundtable\06-07 Application (may 07).doc 11