PROJ00432

• Contract/PO #: C153738
• Contractor Name: Georgetown, Town of
• Contract Type: Loan
• Water District: 6
• County: Clear Creek
• Bill Number: SB 96-153
• Loan Projects - Doc Type: Feasibility Study

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Social, Economic, and Physical Impacts

The augmentation plan will have no negative social impacts.

The project will have a net positive economic impact on the town. Initially, the project will use
Georgetown's financial resources to fund the project above the amount provided by the CWCB loan.
Loan payments to CWCB will also utilize water revenues during subsequent years. Georgetown will
have sufficient senior water rights to avoid the problem of having their water right being called out.
The Town will, therefore, not be put into a position of restricting municipal water use or being forced
to purchase relatively expensive augmentation water.

There are no physical impacts associated with this project.

Pennitting

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No permits will be required.

No EA or EIS will be required.

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Financial Plan

Financing for the project consists of a $206,250 loan from the Colorado Water Conservation Board
(CWCB), and $68,750 from the Town. The Town had a Median Household Income between 80
percent and 110 percent of Statewide Median Household Income for 1990. The CWCB loan will
have an interest rate of 5.25%, a term of 30 years, and an annual payment of approximately $13,800.
A table showing loan repayment is included in this study. The CWCB Loan Application, the CWCB
Memorandum of loan approval, and the CWCB approval letter are found in Appendix F.

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The Town is not in default on any of its current obligations, and the financial condition of the Town's
water enterprise appears good at the present time. The Town derived $13,140 in annual income from
water sales in 1993. 1994 water sales income wag $123,000. The Town's Water Enterprise issued
$145,000 in bonds in 1988, remained current on all payments, and paid off the debt in 1997, 6 years
prior to the final payment due date. CWCB Loan payments will come from water revenues collected
by the Town's Water Enterprise.

The financial impact of the water acquisition project on water rates would be about $2.40 per month
for the existing customer base of 488 ($13,800/year CWCB loan -;- 488 customers -;- 12 months per
year). The Town currently charges $14.20 per month for basic residential water service, compared to
the Statewide average of $33. Residential sewer rates are $17.80. Future rates will rise by $4 to $5,
depending on the final form of financing of this water rights acquisition. Repayment of the CWCB
loan can easily be acconunodated by a small rate jncrease.

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The Town's Water Fund financial statements for 1992, 1993, and 1994 are contained in Appendix G.

O&M costs for the existing water system are approximately $70,000 per year.

Feasibility Study: Town of Georgetown
Water Rights Acquisition Project
January ~996

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