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<br />DUANE!l <br /> <br />. <br /> <br />@) <br /> <br />. <br /> <br />Recommendation -- Financino Construction of Potable <br />Wa tel' and Was tewa tel' Sys terns <br /> <br />The Interim Committee on Agriculture recommends the creation of a <br />state-supported local government water and sewer system construction <br />fi nanc i ng prograln. The fi nanci a 1 ass i stance shou1 d primarily be in <br />the form of state subsidized low-interest loans, with a flexible <br />payback period. Additionally, a nominal amount of grant moneys should <br />be available for local government agencies unable to qualify for a <br />loan. To become eligible, a system must have a documented health need <br />as determined by the State Department of Health and undergo a fiscal <br />capacity analysis done by the State Department of Local Affairs to <br />determi ne th'e local government's own fi nanci al capabil ity and the <br />extent to which it needs state assistance. Projects eligible to <br />receive assistance are storage facilities constructed for treated <br />water, water and sewer distribution, and collection and treatment <br />facilities. Use of the perpetual severance tax trust fund, <br />unallocated state lottery proceeds, a possible state sales tax <br />increase earmarked for state and local capital contruction projects, <br />or use of the state general fund all should be examined as potential <br />state revenue sources to support the program.. <br /> <br />The committee received throughout the interim periodic updates on <br />the efforts of a work group assembled to develop a proposal for <br />funding construction of potable water and wastewater systems. The <br />group (composed of representatives from the Department of Health, the <br />Colorado Municipal. League, the Special District Association, the <br />Colorado Water Conservation Board and others) was unable to develop a <br />specific proposal in time for consideration by the committee. The <br />above recommendation, submitted by the group as part of . their report <br />to the committee, represents the general concept of the program <br />proposal being developed by the group. <br /> <br />The committee understands the complexities involved and is <br />supportive of the efforts of the work group. The committee recommends <br />that the group continue its efforts to develop a proposal for a <br />funding program to assist local governments, and submit such proposal <br />to the General Assembly for consideration as soon as practicable. <br /> <br />-l~ <br /> <br />I <br />