C153718 Paid in Full Contract

• Contract/PO #: C153718
• Contractor Name: Morgan County Quality Water District
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

•
Water Lease was $48,000 par year. Tha District's
payment in 1994 was a little over $156,000.
Concerned about the rapid cost increases for
cater supply under the 1977 Lease, the District's Board
has been working for over two years to negotiate an
agreement to purchase these leased water rights. In
August 1995, the District was successful e t
into an agreement with the owners to purc
Gulch water rights, four existing water
section of land overlying the same $3,099, 167,
$3,000, 000 of which would come from o•,,. -
revenue bonds.
The proposed bonds will be payable solely
from the revenues of the District's water system and
will not be paid from property taxes. Nor will the
bcnds create any lien against any lands included within
the District. The Bonds will be payable overperiod
o 20 years and will bear interest at a net effective
interest rate not to exceed 7% per annum. Based on
studies and investigations made by the District's
Board, no increase in user fees is expected tolbe
recuired for repayment of these bonds.
It makes good business sense for the District
to purchase these water rights so that it may own, '
control and regulate the price of its water supply
rather than merely lease' the same and face an unknown
future as to availability of supply and cost. District
electors should vote in favor of these bonds.
•
A summary of written comments against QuesLon filed
with the District's Designated Election official by
October 6, 1995, is as follows;
No comments were filed by the constitutional deadline.