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<br />I <br />I <br />I <br />I <br />I <br />1 <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />economic profile of Lyons may change as more effluent families from Boulder and other Front <br />Range communities migrate into the service area. <br /> <br />A conceptual review ofrates was conducted by the Town in August 1995. In general, rate <br />structures and methods vary greatly among Colorado water providers. Data reported in <br />Colorado Municipal League (1994) from twelve cities or towns similar to Lyons were used for <br />comparison. The average rate was $44.09 per 20,000 gallons per month or about $2.20/1000 <br />gallons. Longmont's rate structure started at $2.67/1000 gal. In Lyons, a 1987 rate structure <br />was based upon $1.60/1000 gallons for metered users. RED, Inc subsequently analyzed the <br />financial impact of selected water project costs on the water users. In March 1996, the Town <br />raised water rates by 90 percent, as stated in the fmancial analysis as discussed in Appendix A. <br /> <br />Financial Planning and Funding of Improvements <br /> <br />The diversion and intake project is being considered as part of a larger improvement program <br />in the water and waste water infrastructure of the Town of Lyons. Recommendations for other <br />improvements are contained elsewhere in this report and in companion report(s) on the waste <br />water system. The Town has applied to the Colorado Water Conservation Board for a loan to <br />help pay for the diversion/intake improvements. Concept Estimates of the debt service and <br />costs borne by the water customers, through the Water Fund enterprise, are contained in the <br />Appendix. Collateral and security for the proposed loan are to be the assets of the Town's <br />Water Fund, including the revenue stream generated by the monthly water bills. Details of the <br />current and anticipated future value of these assets are discussed in a letter of January 5, 1995, <br />attached in Appendix B. Estimates shown that a considerable water rate increase is required to <br />fund the entire improvement program envisioned by the Town, but the above comparison of <br />rates indicates that some increase is anticipated by the Town administration, <br /> <br />Table 3. Conceptual Costs for Diversion and Intake Improvements <br /> <br /> Costs <br />Line Item ( 1996$) <br />Diversion structure with intake and presedimentation channel: <br />A, Construction w/ 20% contingency 300,000 <br />B, Water rights studies, permits, legal and admin allowance 20,000 <br />C. Engineering design plus construction review 54.000 <br />Total item 374,000 <br />