PROJ00060

• Contract/PO #: C153721
• Contractor Name: Lyons, Town of
• Contract Type: Loan
• Water District: 5
• County: Boulder
• Bill Number: SB 96-153
• Loan Projects - Doc Type: Feasibility Study

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An analysis of estimated water use and allocation of cost in Appendix A shows the following
summary data for 1994 based upon utility records:

A. 170 metered single-family customers in Lyons used about 96,146 gallons and paid $40,480.
B. 284 unmetered single-family customers used about 258,398 gallons and paid $78,425.

Therefore in 1994, metered customers paid $2.4811000gal and consumed 8,012 gal/monda.
Unmetered customers in the same class paid $1.07 /lOOOgal and consumed 21,533 gal/month..
These results raise questions of equity among the classes and suggest the need for change in the
existing rate structure.

Operating and Maintenance Expense

The Town of Lyons has three (3) full time operators assigned to the operations and maintenalll~e
of the water and waste water facilities. Time and responsibilities are split equally between the
water system and the waste water system. Additionally, 16 percent of the electrician's time and
30 percent of the Public Works Director's tiIrte are available to water and waste water utility
operations. The Town also has administrative staff for bookkeeping, utility billing, purchasing,
etc. The cost of the administrative services is allocated to the budgets of each utility fund.

Operations, maintenance and administration (O/M/ A) costs of the water supply, treatment and
distribution systems are broken down into budget categories which include salaries, utility costs,
fuels, etc. Professional services (engineering) and some minor special project costs are includled
in this annual allocation, Annual cost for a/MIA in 1994 was $118,907. Data for 1992 through
1996 (budget) are included in Table 13. The Schedule of Resources. Expenditures. Transfers and
Changes for the Water Fund contains a detaile:d breakdown of these costs and is available from
the Town Accountant. Bond repayments, depreciation, capital improvements and major repairs
are budgeted separately from the O/M/ A allocation.

Bonded Indebtednes~ and Bond Repayment

A large general obligation bond was retired by the Water Fund in late 1995, The town currently
has one bond outstanding in the Water and Se:wer Funds; it is a 1991 Water and Sewer (Joint)
Revenue Bond for $245,000 with payment to 12/1/05. The semiannual bond payments are split
equally between the two funds for repayment. Payment of the 1991 bond will range from $12,690
in 1996 to $24,188 in 2005 for each of the funds.

Water Connection (Tap) Charge

The current charge for a residential water tap is $4500.00 and more for larger taps sizes,
collected at the time of issuance of a building permit. The Town charges an additional amount
for the materials and equipment necessary to install the water meter. The tap fee income is