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VII-5 : The low initial tap fee is reasonable since existing customers must abandon their present systems and incur service line costs. However, after the first year, the tap fees are to increase to the normal average' rates within the region. The income schedule also shows a minimal growth over the next thirty years because significant growth is not expected in the Allenspark District (substantial growth impossible without a sewer system). Based on discussions with the District, it is reasonable to assume that initially about 105 of the potential 133 equivalent residential units would connect to and use the water system. This estimate is based on the inquiry mailer sent out by the District. If the sign-up number were lower, it is possible that capital costs could be reduced, depending on location of the non-users. The lack of a high tap fee for those who connect during the initial construction period should encourage a con- nection ratio. The growth rate projects a maximum of 150 taps at the end of the thirty year repayment period, which is an increase of only 45 over the initial number of 105 taps. The mill levy income is also shown to increase based on the increased number of taps and users within the District. The assessed valuation increases from $292,700 to $384,000 in the year 2005. This income is gradual over the 30-year repayment period, since growth and development projections are a minimum. FEASIBILITY ANALYSIS Table VII~C is a projected repayment schedule over the 30-year amorti- zation period. The repayments are assumed to be level payments over the next thirty years to include principal and interest. The last ten years of the repayment period would only require debt service payments of $9,420 per year to amortize the remainder of the F.H.A. loan. It can be seen that by this time the District would have substantial income such that most of the income could be used for replacement expenditures.