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Information from CWI indicates the vast majority of their employees <br /> reside in Paonia and Hotchkiss. Table 1 shows the residence of CWI <br /> employees by town.. Also shown is the projected distribution of new <br /> employees assuming the same proportional distribution as that'of the <br /> present employees. <br /> Growth in population would result in increased demand for housing <br /> in the area. Table 2 shows the estimated number of new housing units <br /> required for each level of analysis. Approximately 4.7 acres of land <br /> would be converted to housing under the local hiring level of develop- <br /> ment, and 47.6 •acres with imported labor. <br /> Population increases would require increases in the level of most <br /> public services. Table 3 shows the effect on several categories of <br /> public services and the associated costs for both levels of analysis. <br /> Existing excess capacity and planned improvements in water supply and <br /> sewage treatment would provide adequate service for both levels. Table <br /> 3 shows that the capital costs of providing the necessary services and <br /> facilities would be $184,940 with local hiring and $1,947,570 if the new <br /> employees come from outside the area. Assuming that this capital <br /> expense would be financed for 20 years at 6 percent, annual capital <br /> costs would be $16,120 and $169,800 respectively. Total annual costs <br /> would thus be $35,430 with local hiring and $413,990 if all the employees <br /> were imported. <br /> Income in the area would increase-as a result of this action. Even <br /> with the majority of the employees hired from the local area, income <br /> would increase as they leave lower paying jobs to work in the mine. <br /> This amount is undeterminable since the present level of employment of <br /> the new employees is not known. The 1.0 new persons from outside the <br /> area would directly increase income by $220,000. The multipler effect <br /> would add an additional $118,800 in personal income into the local <br /> economy. If all of the new miners come from outside the area direct <br /> income would increase by $2,244,000 and indirect income increases would <br /> amount to an additional $1,211,760. Increased disposable income in the <br /> area would cause an increase in the demand for goods and services. This <br /> could cause increases in the cost of some of these which would adversely <br /> affect residents with low and fixed incomes. <br /> Revenues to local governments would increase as the result of the <br /> increased production. Increased revenues would come from property taxes <br /> on the coal mined and on new houses, sales taxes, Federal Royalties, and <br /> the state severence tax. As shown on Table 4, total annual revenue <br /> increases would amount to $94,120 with local hiring and $245,420 with <br /> non-local hiring. <br /> Comparing revenues with costs shows that revenues would exceed <br /> costs for local governments under the local hiring assumption. Annual <br /> costs would be higher than annual revenues under the non-local hiring <br /> situation. <br /> If CWI is successful in hiring local people, social impacts of the <br /> proposed expansion would be minimal. The new miners would have the same <br /> 16 <br />