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<br />. <br /> <br />. <br /> <br />Agenda Item 15b. <br />May 12, 1998 <br /> <br />(Updated May 18, 1998) <br /> <br />Page 2 <br /> <br />The District has an agreement with Douglas County wherein the District is responsible for the <br />purchase of water for the 100 water users to be served under Phase I of the project. The County <br />has agreed to assist the District by purchasing the water for the additional 50 water users that will <br />receive service under Phase II. This has the advantage of allowing the purchase of all the water <br />now (before water prices escalate further), without requiring the District to fmance the portion of <br />the water that will be needed for Phase II. The County will sell water to each future water user <br />(0.46 acre-feet per household), as those users request service. Thus the District will only need to <br />buy water for Phase I, and anticipates that it will borrow $400,000 from the CWCB for this <br />purpose. <br /> <br />The $500,000 authorization within the Construction Fund Bill will cover the anticipated <br />borrowing needs of the District. Once the project is complete, any unused funding will be <br />recommended for deauthorization. <br /> <br />The District will establish the mill levy at a level such that income from real estate taxes will <br />cover payments on the loans from the CWCB and the Authority, and provide a surplus of about <br />$18,000 per year. The $18,000 annual surplus will be set aside and allow the District to self-fund <br />construction of Phase II, in the year 2008. <br /> <br />The CWCB $400,000 loan will represent 35% of the Phase I system direct costs, and less than <br />30% of Phase I costs when the $210,000 Denver System fee is included. <br /> <br />STAFF RECOMMENDA nON <br /> <br />The staff recommends: <br /> <br />1. That the terms of the existing Construction Fund Authorization to the Chatfield South <br />Water District, be revised to allow it to be used to pay for up to 100% of the actual <br />cost to purchase water rights and to pay for the usual and customary costs of legal and <br />engineering services needed to transfer these water rights to District use, and <br /> <br />2. That other terms of this authorization remain, and are unchanged. <br /> <br />Action Taken bv the CWCB Mav 12. 1998 <br />The CWCB approved the Staff Recommendation. <br /> <br />Attachments <br />D:\msword\ChatfieldSo598memo <br />