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<br />(I) Storage reservoirs and treatment systems for large <br /> <br /> <br />municipalities and industrial users. Conventional <br /> <br /> <br />financing should be available for these purposes. <br /> <br /> <br />The power of water conservancy districts, water <br /> <br /> <br />conservation districts, and the proposed Colorado <br /> <br /> <br />Water Resources and Power Development Authority <br /> <br /> <br />to issue bonds would be included in this category. <br /> <br /> <br />Irrigation (new facilities or rehabilitation of <br /> <br /> <br />existing systems) and flood Gontrol needs will not <br /> <br /> <br />be met by any of these financing mechanisms. Small <br /> <br /> <br />communities' financial resources will, in many <br /> <br /> <br />instances, be strained if they have to compete in <br /> <br /> <br />the marketplace for dollars. . <br /> <br /> <br />(2) Storage reservoirs and treatment systems for small <br /> <br /> <br />communities and rural areas. The loan and grant <br /> <br /> <br />programs of the Farmers Home Administration (FmHA) <br /> <br /> <br />and the grant program of the Department of Housing <br /> <br /> <br />and Urban Development (HUD) are the primary <br /> <br /> <br />federal vehicles in this area. The budgets for <br /> <br /> <br />both agencies have declined in recent years and are <br /> <br /> <br />apt to become even smaller under the Reagan Adminis- <br /> <br /> <br />tration. Energy impact assistance grants, adminis- <br /> <br /> <br />tered by the Colorado Department of Local Affairs, <br /> <br /> <br />are the other major source of monies. Based upon <br /> <br /> <br />recent experience, it appears that the demand for <br /> <br /> <br />financial assistance in this area exceeds available <br /> <br /> <br />funds. <br /> <br />-5- <br />