Arkansas - Las Animas Water System Improvements_App 2

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Water Supply Reserve Account - Grant Application Form Fonn Revised May 2007 CCA correctional facility. Reportedly, several areas within the city are suited for residential building renovation and reconstruction. Future adjacent development, which may be annexed into the community for service, is also a potential. The City of Las Animas' governmental authority is that of a statutory city. The city was incorporated in 1886. The city provides general municipal services authorized under its statutory city enabling legislation. Those services include street maintenance, park and recreation, potable water, sanitary sewer service, mosquito control, storm water management, electric power, police protection and library services. The services provided by the city are anticipated to continue into the foreseeable future based upon its role as the governmental authority for the community. Other utility related services are provided by private enterprise including natural gas service through Kinder Morgan, telephone service provided by CenturyTel, and cablevision services through Charter Communications. The City of Las Animas is the largest municipality in Bent County. The city serves as the county seat. The economic roots of the area lie within agriculture although in the last two decades diversification of the employment base has been pursued. While agricultural activities are still a primary employment base in the region, major employers in the area include the BCCF, a correctional facility owned and operated by the CCA; the Bent County Health Care Center; the Colorado Department of Corrections, Fort Lyons Correctional Facility; the M2P2, LLC, farrowing facility (formerly Bell Farms); Las Animas RE-1 School District, Bent County; and the City of Las Animas. Additional employment within the area consists of retail, commercial and service industries typical of a small rural city necessary to support itself and outlying smaller communities. Agricultural related activities still serve as a significant economic activity within the region. Socio-Economic Characteristics The City of Las Animas reflects land use patterns of typical rural communities. The majority of the community is zoned residential. Limited commercial activity occurs within the planning area. No industrial development exists within the planning area. Current land use practices are expected to continue. No major departure from the current land use patterns established within the city's service areas are envisioned. Representatives of the city indicate that the only significant development pressure comes by means of the doubling in size of the local correctional facility. Some growth is expected from this expansion; however, limited growth is anticipated to occur as a result of infilling within the service area. The economic roots of the area are agricultural, although in the last decade diversification of the employment base has been pursued. While agriculture activities are still a portion of the employment base in the region, major employers in the area include the local school district, Bent County government, the City of Las Animas and banking institutions. Nearby employers include the Corrections Corporation of America (CCA) Correctional Facility and various other employers in the nearby cities of La Junta and Lamar. Agricultural related activities still serve as a major economic activity within the region. In comparison with the rest of the State of Colorado, Las Animas falls significantly below the median state average for income. Based on the 2000 census data, the city's median household income is $26,157 compared to the state's average of $47,203. Based on 2005 data from the Colorado Department of Local Affairs, the statewide average monthly water bill was $34.68, while the city's average monthly bill is $35.90, already higher than the state average. Such being the case, the city simply does not have the additional debt capacity or retained earnings available to offset the financial shortfall. Furthermore, with the possibility of the Arkansas Valley conduit starting to materialize, the city wants to be in a position where they have the financial ability to connect to the conduit. Lastly, .the city's user rates are currently paying average monthly water bills that exceed the state average. The city's constituents at the same time have incomes that are significantly below the state's median household income. Therefore neither the city nor the city's constituents have the financial depth to undertake an additional rate increase. Recognizing these realities, the city council has taken the position that any additional debt burden beyond that already incorporated into the project is not practical given its constituency's financial picture. F:\WPDATA\Las Animas\Water\05 WSlmp\Financial\Roundtable\06-07 Application (may 07).doc 12