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<br />/ <br />/ <br /> <br />) <br /> <br />) <br /> <br />/ <br />/ <br /> <br />LIl10N PROJECT, Continued <br /> <br />. CURRENT STATUS <br />In November of 1979, the Town Manager for the Town of Limon <br /> <br />,. <br /> <br />submitted a request for a revised contract for the above reasons. <br /> <br />PROPOSED PROJECT <br /> <br />The authorized project will not change. The request is to change <br /> <br />the contract terms to represent a repayment period of 40 years and an <br /> <br />annual service charge of 3 percent, instead of the present 30 years <br /> <br />and the present 4 percent service charge. <br /> <br />RECOMMENDATION <br /> <br />The Town of Limon will have a large burden in making the annual <br /> <br />water system repayments. A revised contract would provide sub- <br /> <br />stantial assistance to the Town in meeting these obligations. <br /> <br />The revised financing for the project would be as follows: <br /> <br />Farmers Home Adminstration (FmHA) <br />Grant and Loan <br /> <br />$ 785,000 <br /> <br />State Funds (to be repaid by use charges) <br /> <br />750,000 <br /> <br />Local Funds <br /> <br />Total <br /> <br />60u,OOO <br />$2,135,000 <br /> <br />Under this financing arrangement, water use charges would be <br /> <br />levied by the State at the rate of $32,445 per year for 40 years. <br /> <br />Total repayment for the project would be $1,297,800. The same <br /> <br />request for $750,000 with a service charge of 4 percent and a repay- <br /> <br />ment period of 30 years would require an annual payment of $43,373 <br /> <br />. <br /> <br />-2- <br /> <br />,'-' <br />