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-The Town maintains general liability insurance coverage through CIRSA (the Colorado Intergovernmental
<br />Risk Sharing Agency) that includes coverage for property and general liability claims of up to $1,000,000 per
<br />occurrence. In addition, the Town maintains excess coverage of up to $201,000,000 for property and
<br />$5,000,000 for liability claims. The Town's deductible on claims is $500 for most coverages.
<br />• •There are currently no pending lawsuits against the Town which could result in significant financial losses.
<br />-There have been no recall elections in the last ten years.
<br />ECONOMIC ANALYSIS: The Town of Lyons is located in Boulder County north of the City of Boulder on Highway
<br />36. The Town provides 83% of its water service for residential purposes and is considered a bedroom community for the
<br />Cities of Longmont and Boulder.
<br />-The Colorado Department of Labor and Employment reports the top five economic sectors for 2000 in
<br />Boulder County consisted of 38.03% in services, 23.51% in manufacturing, 10.54% in government, 7.61% in
<br />retail trade, and 6.51 % in transportation, communication and public utilities.
<br />-The estimates for these sectors statewide are 29.82% in services, 12.0% in manufacturing, 13.7% in
<br />government, 9.73% in retail trade, and 9.47% in transportation, communication and public utilities.
<br />-The Town of Lyons currently has two subdivisions under development. The first annexation is Lyons Valley
<br />Park which will allow for 202 single - family units, 70 medium-density units, and 129 high - density units.
<br />Currently, 66 single - family units have been completed, and no medium or high - density units have yet been
<br />constructed. The Town estimates that buildout in Lyons Valley Park will be complete by 2015. A second
<br />subdivision, Stone Canyon, just had the final plat approved by the Town. This subdivision will have a total of
<br />72 single - family dwelling units. The developer estimates that Stone Canyon will reach.build -out in five years,
<br />but the Town is taking a more conservative approach and estimates that build -out will occur in approximately
<br />ten years.
<br />Population: According to Census data, the Town of Lyon's population has increased by an average annual rate of 2.59%
<br />from 1,227 in 1990 to 1,585 in 2000. The State Demographer estimates the Town's 2001 population at 1,617.
<br />-Boulder County's population increased by an average annual rate of 2.60% from 225,339 in 1990 to 291,288
<br />in 2000.
<br />-During the same period, the state's population has grown by an average annual rate of 2.70 %.
<br />• Largest Employers: The Town's largest employers consist of Oskar Blues restaurant with 35 employees, Visability.
<br />(mailing services) with 25 employees, Black Bear restaurant with 12 employees, Valley Bank with 8 employees, and
<br />Lyons Excavating with 7 employees.
<br />REVENUE ANALYSIS: The Town has pledged water system revenues for repayment of the proposed loan. The
<br />Town's water revenues are derived from charges for service, tap and development fees and miscellaneous revenue.
<br />-Total revenues for the Town's water system have varied over the last five years with $440,786 in 1997,
<br />$466,008 in 1998, $524,500 in 1999, $546,216 in 2000 and $422,938 in 2001. In 2001, the Town's metering
<br />program was completed, and the final one -third of the Town's customers switched to a lower, metered rate
<br />from the flat water rate of $64.65. The completed switch from a flat rate to a metered rate resulted in user
<br />charges decreasing in 2001, and operating revenues decreasing from $403,982 in 2000 to $361,988 in 2001.
<br />Water and Sewer User Charges: The Town reports that 83% of user charge revenues are from residential customers
<br />with the remainder from commercial customers. The Town does not provide water service to any industrial customers.
<br />No single customer represents more than 3% of the total utilization of the Town's water system. A rate study is currently
<br />underway and should be complete in March of 2003.
<br />-The Town's average residential monthly water rate is $36.40, compared to the 2002 estimated average state
<br />municipal charge of $34.68. The Town's current water rate is based on an $8.00 base charge per month,
<br />$3.55 per 1,000 gallons of consumption, and average consumption of 8,000 gallons per month.
<br />-The Town's average residential monthly sewer rate is $25.50, compared to the 2002 estimated average state
<br />municipal charge of $14.79. This rate is based on an $8.00 base fee plus 75% of the customer's winter water
<br />rate.
<br />• Contributed Capital: Annual sewer system revenue from tap and development fees has varied over the last five years
<br />from a low of $45,000 in 2001 to a high of $165,000 in 1999. Tap fees represented 11% to 37% of total revenue from
<br />1997 to 2001.
<br />-Residential water tap fees are $17,500 per connection. Commercial and industrial water tap fees start at
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