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<br />J J 1-5 <br /> <br />. <br /> <br />FINANCE AND OPERATION <br /> <br />Present town ordinances regarding water system financing and operating <br /> <br /> <br />procedures are attached as Appendi x A. In general, the water uti 1 i ty <br /> <br /> <br />operates under an individual separate fund which is independent of the <br /> <br /> <br />General Fund; that is, the General Fund would n~t be depleted nor increased <br /> <br /> <br />by the utility operation. However, it is possible to assess a tax levy <br /> <br /> <br />specifically for the water system. The past ye~r's Water Fund revenues <br /> <br /> <br />and expenditures can be examined in the 1974 audit report prepared by Dan <br /> <br /> <br />M. Handy and Associates, attached as Appendix B. The projected 1976 rev- <br /> <br /> <br />enues and expenditures can be reviewed in pertinent sections of the Town <br /> <br /> <br />of Carbondale budget, attached as Appendix C. <br /> <br />The sources of reven ues ava i 1 ab 1 e to the Wate r Fund i nc 1 ude taxes, tap <br /> <br /> <br />fees, and service charges. Currently no taxes are applied to the Water <br /> <br /> <br />Fund. The tap fee is $1,000 for each equivalent single family residence <br /> <br /> <br />(EQR) in Town, and the service rates are $15.80 per quarter per EQR in <br /> <br /> <br />Town. Outside users must pay one and one-half times the in-town rates for <br /> <br /> <br />both tap fees and service charges. <br /> <br />. <br /> <br />Carbondale presently has 435 active water atcounts, 326 in Town and 109 out- <br />side the Town limits. The Colorado State Statutes provide the Town with <br />the abi lity to build faci I ities and provide water service outside the Town <br />boundaries in 1973 CRS 31-12-101 (35) and 1973 CRS 31-12-101 (39). <br /> <br />Examination of the attached audit oeport and the 1976 budget indicates that, <br /> <br /> <br />at present, there is essentially no excess money in the Water Fund to finance <br /> <br /> <br />any sizeable capital improvement. Therefore, any improvement program would <br /> <br /> <br />have to be financed by grants, loans, or sale, of bonds. However, future <br /> <br /> <br />development plans in Carbondale, which are reflected in the 1976 budget, in- <br /> <br /> <br />dicate a considerable increase in tap fee revenues in the next few years. <br /> <br /> <br />The additional taps wil I also mean an increase in service charge revenues. <br /> <br /> <br />This additional income should insure Carbondale's ability to repay any in- <br /> <br /> <br />curred indebtedness. Carbondale could also levy taxes to apply to the water <br /> <br /> <br />fund. <br /> <br />. <br /> <br />The present Carbondale mill levy is 11 mills and the 1974 assessed evalua- <br />tion IJas $2,591,650. <br />