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<br />. <br /> <br />. <br /> <br />Agenda Item IOd. <br />January 24, 1996 <br /> <br />2 <br /> <br />( <br />,- <br />l <br />. <br /> <br />with Amendment #1, it would be necessary for the people of Lyons to approve this by vote. <br />The earliest this vote could occur would be November 1996. (See attached letter dated Jan. 5, <br />1996, from the Town's accountant, Janice Saeger). <br /> <br />(b) Financial Condition: <br /> <br />A parity lien test indicates the Town meets the requirements necessary to issue additional parity <br />liens ($500k form the CWR&PDA, and $280.5K from the CWCB), based on the net revenues <br />of the Water and Sewer funds. <br /> <br />The fInancial impact of the project on water rates was evaluated by the Town's accountant (See <br />attachment, Draft Feasibility Study, Table 10.) When $780,500 is borrowed ($500k form the <br />CWR&PDA, and $280.5K from the CWCB), water rates will need to increase 58%, from about <br />$22/month to $35Imonth. Even though this is a signifIcant increase, it is still well below the <br />average water rate of $44/month for twelve cities or towns similar to Lyons, and just slightly <br />more than the Statewide average of $33.15 (Reference data from the Colorado Municipal <br />League), The evaluation also shows that the monthly bill remains at about $35 through the year <br />2006. <br /> <br />. <br /> <br />(c) Feasibility Study: <br /> <br />A draft Feasibility Study has been completed by RED Engineering, Fort Collins. The sUldy <br />evaluates several alternatives, and indicates there are no significant roadblocks which would <br />stand in the way of the preferred alternative. (portions of the Draft Feasibility Study are <br />attached. ) <br /> <br />The issue of incorporating a gaging station into the design of the new diversion structure has <br />been addressed in the feasibility study. The gage would be used to monitor instream flows, <br /> <br />STAFF RECOMMENDATION <br /> <br />The staff recommends: <br /> <br />1. That a construction fund loan in an amount of $280,500 not to exceed 75% of <br />actual project costs, be ratified for The Town of Lyons (and/or The W~lter <br />Enterprise for The Town of Lyons) to rehabilitate the Town's Raw Water Int:ake <br />Structure, and <br /> <br />2. That the financing terms shall be at an annual percentage rate of 5%, for <br />a duration of 20 years, and <br /> <br />. <br /> <br />) <br />. ------./ <br />