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<br />that the revenues from sales tax must be used to help finance some of the <br /> <br />capital improvements for the water system. Presently, the sales tax reve- <br /> <br />nues have been budgeted for other projects such as street improvements, pur- <br /> <br />chase or construction of a new town complex, a much needed drainage improve- <br /> <br />ment project, and other municipal capital improvements. <br /> <br />(Table XIII later in <br /> <br />. <br /> <br />this report shows that $624,434, or about 32 percent of sales tax revenues, <br /> <br />will have to be used to help finance the repayment of the water capital im- <br /> <br />provement.) <br /> <br />Expected Revenue <br /> <br />In Table V on page 19, it was shown that the average annual increase <br /> <br />in the number of domestic water taps in the town of Eagle was 5 percent. This <br /> <br />5 percent growth factor will be used in projecting expected revenues from water <br /> <br />sales. The following table projects the estimated average annual increase in <br /> <br />the amount of sales tax revenues. <br /> <br />c <br /> <br />TABLE XII <br /> <br />Percent Increase in Sales Tax Revenues <br /> <br />. <br /> <br />Year Amount of Sales Tax Percent of Increase <br />1971 $30,371 <br /> 24 <br />1972 39,888 <br /> 10 <br />1973 44,610 <br /> 21 <br />1974 55,576 <br /> 17 <br />1975 67,166 <br /> <br />Based on the average annual increase for the last five years, the <br /> <br />projected sales tax revenues will increase at the rate of 18 percent a year. <br /> <br />However, it is inconceivable to project the sales tax increase of 18 percent. <br /> <br />Yet, a 12 percent sales tax increase would be more realistic. Table XIII pro- <br /> <br />jects sales tax revenues from 1976 through 1991. <br /> <br />- 66 - <br /> <br />. <br />