PROJ00109

• Contract/PO #: C153347
• Contractor Name: Starkville, Town of
• Contract Type: Loan
• Water District: 19
• County: Las Animas
• Bill Number: SB 78-69
• Loan Projects - Doc Type: Feasibility Study

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CHAPTER VIII

FINANCIAL PROGRAM

The total improvements needed in Starkville will require
a combination of GRANT and loan programs. The total project cost
must be paid out of Water User fees and Water Tap fees. The
current water user fee is $8.00/month, and no tap fee exists.

An increase of the user charge to $14.00/month would provide
$217,720 project as a 50% GRANT and loan for 40 years at 4%
interest. This size project would cover the first three priority
items with some contingency fund for construction and inflation.

As stated before, the total program will depend on additional
grants from HUD, EDA, FmHA and Four Corners Regional.Commissions
(FCRC). The 1978 construction, engineering, etc., costs are
programmed at $1,074,554. The following Grant program is needed
for the total project:

Construction Costs: $1,074,554
Grant Water Conservation Board:
Loan Water Conservation Board:
Other Grants:

$108,860
$108,860
$856,834

100% HUD - CD
100% EDA LPW II
Other

$250,000
$400,000
$206,834

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The payout schedule for the loan of $108,860 is shown in
the following table. In this table, a $14.00 per month user
fee for 52 users is the base revenue. A fee increase on basis
of 52 users will be needed in the 15th, 20th, 25th, 30th, 31st,
36th and 38th year of loan repayment in the amounts of $1, $2,
$3, $3, $3, $3, and $4 dollars respectively. An offset on this
increase would be added users by population growth and/or invest-
ment of surplus funds into savings account or other high interest
short-term funding.

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