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<br />1 <br />1 <br />1 <br />1 <br />1 <br /> <br />1 <br />1 <br />1 <br /> <br />1 <br />1 <br />1 <br />'I <br /> <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />I <br /> <br />4. <br /> <br />A Forest Service Special Use Permit will be required before <br />construction takes place. Prior to issuance of the permit, either an <br />Environmental Assessment Report or an Environmental Impact Statement <br />for the project will have to be completed by the Forest Service. <br /> <br />5. <br /> <br />The cost of the reservoir and appurtenances is approximately <br />$9,162,000 or roughly $3,160 per acre-foot of storage capacity. <br /> <br />6. There are potential funding sources for the construction of a <br />reservoir on Snowball Creek. The main question is whether or not <br />pagosa Springs has adequate repayment capability. The most likely <br />funding package would be a combination of sales of revenue bonds with <br />50 percent of the project funded by low interest Colorado Water <br />Conservation Board (CWCB) funds. Each source would finance half of <br />the construction cost or $4,581,220. The annual payment on the CWCB <br />loan would be $298,015 assuming five percent interest and a thirty <br />year term. The size of the bond issue would be $5,659,012 with an <br />annual payment of $502,676 at 8 percent interest over the 30 year <br />term. The total cost of the bond issue with interest would be <br />$24,020,713 over a 30 year period. A two year construction period was <br />assumed. <br /> <br />7.3 <br /> <br />RECOMMENDATIONS <br /> <br />The recommendations contained herein apply specifically to the <br />proposed Snowball Creek Dam and appurtenances. Local opposition to the <br />project has recently appeared, and other alternative sites have been <br />mentioned that were not included in any of the Authority's studies to date. <br />The decision on whether or not to examine other potential dam sites is <br />beyond the scope of this study, and not included in this report. <br /> <br />The town will need to determine whether or not they have the financial <br />resources to pay for the project. If the project is to proceed and in <br />order to expedite the construction of the dam and reservoir, many of the <br />activities mentioned below could be initiated simultaneously. One item <br />that may be difficult obtain is the Forest Service Special Use Permit. <br /> <br />7-2 <br />