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<br />. FINANCING <br />The financial resources of the town of Meeker are not adequate at <br />this time to finance a new water system which will primarily benefit <br />future inhabitants. As a matter of fact, very few municipalities in <br />Colorado would be able to finance a new water system to accommodate a <br />doubling of the present population within the next ten years. Prelimi- <br />nary contacts at this time indicate that federal funds can be made <br />available through the Farmers Home Administration, if such federal funds <br />can be supplemented by state or local funds. On this basis, a proposed <br />construction budget is as follows: <br /> <br />Federal Grant <br />FHA Loan <br />Colorado Water Conservation Board Construction Fund <br />Tap Fees <br /> <br />Total Project Cost <br /> <br />$ 350,000 <br />800,000 <br />900,000 <br />. 200,000 <br />$2,250,000 <br /> <br />Under this financing arrangement, retirement of the capital invest- <br /> <br /> <br />ment, together with annual operation and maintenance costs, would <br /> <br /> <br />require the following annual expenditures: <br /> <br />Retirement of FHA Loan (30 yrs. @ 5%) <br />CWCB Water Charges (30 yrs. @ 3%) <br />Operation and Maintenance <br />Total Annual Expenses <br /> <br />$ 52,040 <br />45,918 <br />69,700 <br />$167,658 <br /> <br />At the present time, water charges within the town of Meeker are <br />approximately $103 per year for an equivalent residential unit and <br />about double this amount outside the town limits. The report estimates <br />that with an increase in tap fees and the projected population increase <br />the proposed new water system could be constructed without an increase <br />I <br />in water use charges. The board staff believes that this is a somewhat! <br />doubtful premise. However, the staff does believe that a substantial <br />tt increase of the Meeker population is certain to occur, and that the <br /> <br />-6- <br />