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<br />during subsequent years, The Town of Coal Creek will have sufficient senior water rights <br />to avoid the problem of having their water right being called out. The Town will, <br />therefore, not be put into a position of restricting municipal water use or being forced to <br />purchase relatively expensive augmentation water, <br /> <br />There are no physical impacts associated with this project. <br /> <br />Permitting <br /> <br />No permits will be required, <br /> <br />No EA or EIS will be required. <br /> <br />Financial Plan <br /> <br />Financing for the project consists of a $54,00,00 - $67,500,00 loan from the Colorado <br />Water Conservation Board (CWCB), and $$6,000,00 - $7,500,00 from the Town, The <br />Town had a Median Household Income less than 80 percent of Statewide Median <br />Household Income for 2000. The CWCB loan will have an interest rate of 3,75%, a term <br />of30 years, and an annual payment of approximately $3,332,00 - $4,165,00. <br /> <br />The Town does not have any current obligations, and the financial condition of the <br />Town's water enterprise appears good at the present time. CWCB Loan payments will <br />come from water revenues collected by the Town's Water Enterprise, <br /> <br />The financial impact of the water acquisition project on water rates would be about $ 1,68 <br />- $2,10 per month for the existing customer base of 165 ($3,332,00 - $4,1 65,OO/year <br />CWCB loan divided by 165 customers divided by 12 months per year), The Town <br />currently charges $25,00 per month for basic residential water service, Repayment of the <br />CWCB loan can easily be accommodated at our current rate or with a small increase, if <br />needed, <br /> <br />The Town's Water Fund financial statements for 2000,2001 and 2002 are contained in <br />Attachment E. <br /> <br />O&M costs for the existing water system are approximately $64,000,00 per year, <br /> <br />Collateral <br /> <br />The Town has the following collateral it can offer for the loan. <br /> <br />I. The Town of Coal Creek has a separate water enterprise which receives revenues <br />from its water customers. The CWCB can take a collateral interest in this stream <br />of revenues, <br />2. The Town's Water Enterprise will own the water shares that are purchased with <br />this loan, These shares can be pledged as additional collateral, <br /> <br />-4- <br />