PROJ00540

• Contract/PO #: C153697
• Contractor Name: Norwood, Town of and Norwood Water Commission
• Contract Type: Loan
• Water District: 60
• County: San Miguel
• Bill Number: FSL
• Loan Projects - Doc Type: Feasibility Study

Town

Rural

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F.

FINANCIAL CAPABILITY

Sources Qf Revenue.

General. The Norwood Water Commission relies on the
following sources of revenue fpr upkeep and improvement
of its system:

a. Tap Fees
b. Service charges
c. Government grants and low interest loans
d. Revenue Bonds

The Norwood Water commission presently does not have a
mill levy. All water related ~xpenses are supported by
income from tap fees and month~y service charges (plus
interest earned and miscellanepus items). Any excess
after expenses goes to a reser~e fund.

Service charges are the primary basis for funds for daily
operation and maintenance costs.

Tap Size

3/4"
1"
1-1/4"
1-1/2"
2"
3"

Tap Fee

$5,000
$8,340
$11,700
$16,700
$26,700
$50,000

i
The tap fee is primarily a Plapt Investment Fee or PIF.

Monthly service fees are as foillows:

First 1000 gal.
Next 6000 gal.
Greater than 7000 gal

$10.00
$2.50/1000 gal.
$2.50/1:000 gal.

$10.00
$3.00/1000 gal.
$4.00/1000 gal.

Revenues in 1993 were $184, 485i from approximately 550
taps. No tap fees were collec~ed, since there is a tap
moratorium in place.

Financina Capital Expenditures. capital expenditures for
expansion and upgrading of facilities have been financed
in part by revenue bonds, grants and low interest loans.
The source of funds for the 19$3 improvements were grants
and loans from the Energy Impact Fund (Department of
Local Affairs). Farmer's Homel Administration sponsored
the revenue bonds used for the! 1977 improvements. These
bonds are now held by the General Electric corporation.

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