PROJ00283

• Contract/PO #: FS0009X
• Contractor Name: Swink, Town of
• Contract Type: Loan
• Water District: 0
• County: Otero
• Loan Projects - Doc Type: Feasibility Study

I
I
I
I
I
I
I
I
I
I

I
I
I
I
I
I
I
I
I

The remainder of the project ($417,000) could be financed by a 30-year Colorado
Water Conservation Board loan, or a 30 year FHA loan or a combination of State,
Federal and Commercial loans at combined interest rates not to exceed 4%.
With full grant funding and the Rate 1 user charges, the project is financially
feasible. Surplus funds can be accumulated to finance approximately 50% of
the proposed Stage II 1995 improvements. Additional loan or bond financing
will be necessary for the remaining 50% of the Stage II improvements.

If combination grants can be obtained through multiple Federal agencies with the
remainder of the project financed by a 30-year Colorado Water Conservation Board
low interest rate loan, the project becomes increasingly more feasible and the
user charges can be substantially reduced. Depending on the level of grant
financing obtained the user charges can be reduced to conform to Rate Structure
113 or 115.

If grant funds are not awarded, the Stage I project will have to be substantially
reduced in scope and deferred until a later date. It is recommended that
the treatment facilities and storage facilities be installed as recommended
for Stage I construction. The scope of work on the distribution system should
be reduced to optimize the most area served at the least cost. The distribution
system can be installed on a "piecemeal" basis as long as the main sizes and
locations shown on Plate II are adhered to and the looped system is eventually
completed. Water rate schedules will need to be in accordance with Rate No.
2 (or higher) depending on the scope of work accomplished. While this
method of financing is financially feasible, it is considered very marginal
when compared to the low median income for the area and places an excessive
burden on the community.

8.2 STAGE II CONSTRUCTION

As previously shown in this report, a large percentage of the Stage II improve-
ments relates to additional water treatment facilities. It is projected that
these faci1it!es will be required approximately year 1995 dependent on growth
and water usage. The need for these Stage II improvements should be re-examined
and re-eva1uated at that time with particular emphasis on the availability and
cost of treated water via the proposed Arkansas Valley conduit. If treated
water is available from the conduit by 1995, then the decision as to whether
the additional treatment facilities should be constructed can be made strictly on
an economic comparison of the water supply from two sources.

\\
\

-48-