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<br />. <br /> <br />. <br /> <br />This would suffice for the interim period. After water becomes available <br />. from the Dolores Project, the costly pumping from the Dolores River <br />would be discontinued. <br /> <br />The cost of constructing the new system is estimated at $1,200,000. <br />The proposed co~struction budget is as follows: <br /> <br />EDA Grant <br />Four Corners Grant <br />State Funds (to be repaid by use charges) <br /> <br />$ 500,000 <br />300,000 <br />400,000 <br />l?1,2UU,OOO <br /> <br />RECONlviENDATION AND PRIORITY <br /> <br />The town of Dove Creek and the adjacent rural areas have long had <br />one of the most critical water situations in the state of Colorado. The <br /> <br />area is unable to accommodate any type of economic growth because of the <br />lack of domestic water supplies. Scarcely a year goes by in which the <br />area is not faced with some type of crisis because of either drouth or <br />floods. With the immine~ce. of the Dolores Project, it now appears <br />possible to solve the water supply problems of the Dove Creek area on <br />both an iterim and long term basis. The population of the area is <br />certain to increase as a result of new mining activity and the assurance <br />of irrigation water for the surrounding dry land areas. <br />The present financial ~esources of the town are too meager to <br />finance a new water system. The town has an outstanding indebtedness <br />of $153,000 on the present system. It appears that approximately <br />$800,000 in federal grants can be secured if the state of Colorado will <br />participate in project construction to the extent of $400,000. If funds <br />are made available to the Colorado Water Conservation Board Construction <br />Fund in that amount, water use charges would be levied by the state at <br />the rate of $14,624 per year for 40 years, for a total repayment of <br /> <br />. <br /> <br />$584,960. <br /> <br />-4- <br />