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<br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />growing at the rate of 10 to 15 new units per year. Contrary to <br />District No.1, District No.2 has a mix of single family homes <br />and townhouses. <br /> <br />Water for District No. 2 is provided by three wells located <br />in the alluvium of Sheep Springs Gulch, which is immediately to <br />the north of the present homes. These wells have been drilled <br />since the formation of the District and produce about 35 gpm <br />each. District No.2 has constructed a 160,000 gallon storage <br />tank and recently a 500,000 gallon tank. The tanks allow the <br />wells to meet the summer peaks by providing high flows in the <br />daytime that exceed the well capacity and then refilling in the <br />night. During the summer the wells are operating at full <br />capacity nearly all of the time. The wells provide enough water <br />for the existing homes. Shortages almost occurred in 1987, but <br />rains came just in time and the demand decreased. In 1988 when <br />there will be over 180 homes on the system, the likelihood of <br />more severe watering restrictions is good. <br /> <br />Water is distributed by a system of eight and six-inch <br />pipelines. There is a six-inch connection between District's <br />No. 1 and 2 that allows water to be transferred. The tanks in <br />District No. 2 are located at elevation 7,630 feet which is 100 <br />feet lower than the District No. 1 tank. District No. 2 does <br />not have equipment to make repairs and hires or contracts when <br />necessary. <br /> <br />District No. 2 has a five-person Board of Directors, a part- <br />time manager, and a part-time water system operator. District <br />No. 1 operates the sewer plant, so District No. 2 is not <br />involved in that facility. <br /> <br />The audit report for 1986, which includes data for the last <br />two years for District No. 2 is included in Appendix 1. <br />Generally, the District had $2,728,198.00 in assets and <br />liabilities in 1985 which increased to $2,851,685.00 in 1986. <br />In 1985, the water and sewer revenues and expenses were $176,871 <br />and $89,974 respectively; in 1986 the respective amounts were <br />$172,952 and $94,597. In each of 1985 and 1986, about $70,000 <br />of excess revenues were used for debt service on water and sewer <br />facilities. <br /> <br />- 6 - <br />