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<br />. <br /> <br />. <br /> <br />\ <br /> <br />e Agenda Item 18 <br />January 20, 1995 <br />Page 3 <br /> <br />Financial Feasibility <br /> <br />The Norwood water system's current long-term indebtedness amounts to about <br />$700,000. The funding request would add $950,000 to the existing debt structure. <br />According to the feasibility study, it is the intention of Norwood to fund current debt, <br />new CWCB debt, and operating expenses from operating revenues. Tap fees would be <br />used for future capital improvements projects. <br /> <br />The Norwood system is entirely metered and the current average water bill is about $28 <br />per month. The fmancial projections in the WestWater feasibility study, based entirely <br />on operating revenues and not including tap fees, indicate that with the new project the <br />average water bill on the Norwood system would increase by about $5 per month to <br />$33 per month. The capital cost per existing tap for the project would amount to about <br />$1,800. <br /> <br />Water Rights <br /> <br />e <br /> <br />A major concern of the Board staff over the last two years has been, and continues to <br />be, the adequacy of the Town's water rights. Norwood has adjudicated water rights in <br />the Gurley Ditch drainage area as well as 60 shares in the Gurley Reservoir. The <br />WestWater report indicates that the fIrm (dry-year) yield of these holdings is adequate <br />at the present time. Because of the current tap moratorium, however, there is a large <br />number of potential new customers who are expected to' connect to the system in a <br />short 'period of time. In addition, there have been disagreements with the Farmers <br />Water Development Company relative to the use of storage in the Gurley Reservoir. <br />The draft feasibility study provides a preliminary outline for a water rights strategy but <br />does not provide adequate documentation at the present time. <br /> <br />Relationship to the San Miguel Proiect <br /> <br />The proposed San Miguel Project would increase water supplies to existing irrigation <br />systems in the Norwood area including the Gurley Reservoir, thus firming up the yield <br />of Norwood's source of supply. All proposed San Miguel Project facilities would, <br />however, be located well above Norwood's existing facilities and any water from a San <br />Miguel Project would probably be transmitted to Norwood through Gurley Reservoir as <br />is currently done. Thus, while a San Miguel Project might be of benefit to Norwood in <br />terms of enhancing water supplies to the area, storage would still be needed for winter <br />water. It should also be noted that the selected. alternative, the new Norwood reservoir, <br />would be very compatible with the San Miguel Project as proposed. <br /> <br />e <br />