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It would appear to this author that the City of Idaho Springs should make arrangements to market this water reserve within the limitations of State Law and Idaho Springs water l1eeds. Without marketing the water, the added spillway length (retaining storage) would not be a feasible alternate. In essence the alternate decision of spillway Iength and storage depends on the City Council's future policy dealing with water. The water decrees should be investigated and determinations made on utilizing these decrees within the planned activities and growth of the community. METHODS OF FINANCE Methods to finance the capital improvements will in part depend on the City's position on water sales. Of course, this process with the legal questions and answers will take time, and not serve the immediate need to repair the dam. The costs could be supported by Water Bonds with payment by user fees. Based on about 1,200 current users in Idaho Springs paying $4. 50 per month now, the increase would be: $187,325;' 1,200 = $156 flat assessment , An increase in the monthly rate by $2.00 would require this increase to be in effect for over eight years depending on Bond Interest Rate. OTHER METHODS OF FINANCE Division of Local Affairs normally does not finance water projects, although they did support this study. The emergency nature of the repair may induce this agency to supply some grant monies. Farmers Home Administration does support water projects but with stipulations of: *" 5% interest rate with up to 40 year repayment Must use level debt service schedule after first year Income must be set to result in 10% debt service Project must be turned down by Bonding House ** ** .* An FHA procedure is probably not feasible since a Bonding House would pick up the Bonds if the City does not have too many outstanding debts. Secondly, the User Fees may be increased to $6. SO to $8.50 per month using FHA Criteria. IV - 3