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<br />. <br /> <br />FINANCING <br /> <br />The financing of a community water system is a problem which the <br />residents of the community have not yet been able to solve. As a part <br />of the project investigation, various financing alternatives were <br />explored. It appears that financing by conventional means, such as bank <br />loans or general obligation bonds, would require a monthly water charge <br />of somewhere between $20 and $30 per month per family. Monthly water <br />charges in nearby areas are as follows: <br /> <br />Lyons - $8.10 <br />Nederland - 4.84 <br />Estes park- 4.50 <br /> <br />Based upon the survey of water rates in neighboring communities <br />and on the rather limited income of the residents of Allenspark, it was <br />determined that monthly rates in Allenspark per family should not exceed <br />the $10 to $15 range. Such a range requires that any interest rate on <br />the capital investment be relatively low. <br />One possible loan source is the Farmers Home Administration. This <br />agency has the authority to loan money for domestic water systems in <br />rural areas at an interest rate of 5 percent, with the total loan and <br />interest being payable within 40 years. The other possible source is <br />the Colorado Water Conservation Board Construction Fund. A projected <br />project budget as set forth in the project report based upon joint <br />participation by the Farmers Home Administration and the Colorado Water <br />Conservation Board is as follows: <br /> <br />. <br /> <br />-4- <br />