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<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 />I <br />I <br /> <br />In the table, the O/M (Operation/Maintenance) budget in- <br />creases at the rate of 6% per year. Column 3 is a reserve <br />emergency fund, built up to $5,000.00. <br /> <br />In a meeting with the Town Council, the desire for system <br />improvements was voiced by the Council. Further, the Council <br />expressed the need to hold the water user charge in the range <br />of $12 - $14 per month per user. These facts are shown in the <br />overall budget picture for conditions of improvement of the <br />STARKVILLE system. <br /> <br />In discussions with the Water Conservation Board staff, it <br />was decided that a $200,000 loan at 2% interest for 40 years would <br />be more compatable with state Regulations. Table B provides the <br />payment schedule for such a loan to the town of Starkville. <br /> <br />The revenues were assumed to increase by one user per year <br />for growth period of 28 years, consistent with the population <br />growth. With this condition, a cumulative reserve becomes quite <br />large and should be invested for future capital improvements on <br />the system. After a growth period, rate increases will be neces- <br />sary to payoff the debt, or the invested cumulative reserve funds <br />could be used to maintain the rate structure. <br /> <br />. <br /> <br />.. <br /> <br />35 <br /> <br />. <br />