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<br />002252 <br /> <br />, <br /> <br />is necessary to know the total financial capability of the sponsoring <br />agency, in this case the Coal Creek Water and Sanitation Association. <br />The sponsors recognize that such an association has only limited legal <br />authority, which is not adequate for the financing of a major under- <br />taking. Each of the four cornrnunities involved, to wit, Erie, Lafayette, <br />Louisville and Superior, have legal authority to assess taxes, impose <br />water charges and issue bonds. However, these cornrnunities presently <br />are small in size and most of the service area contemplated by the <br />Coal Creek project is outside the existing municipal boundaries. This 1 <br />situation almost certainly requires that all of the proposed project <br />service area be included initially in the formation of a single entity \ <br />which has the authority to assess taxes, impose water use charges and l <br />issue bonds. <br />There are various types of districts permitted under Colorado law <br />which would satisfy the criteria above described. However, it appears <br />that there are two types of districts which would be more suitable for <br />the Coal Creek project. These are the water and sanitatiOn districts <br />(32-4-101, .CRS 1973) and water conservancy districts (37-45-101, CRS <br />1973), As compared to each other and the proposed project area, each <br />of these districts has some advantages and disadvantages. A careful <br />analysis should be made of such advantages and disadvantages in <br />arriving at a final decision. Until such decision is made, it is not <br />possible to prepare an accurate operation and amortization budget for <br />the proposed project. <br />We believe that the additional information required to arrive at <br />an approved project plan can be supplied within a relatively short <br />period of time. This will req~ire a supplemental contract with the <br /> <br />-9- <br />