Our public meeting on August 1st was a success with almost all current users of the Hondius water system in attendance voting for the Project to move forward with the financing commitment received from the USDA. At the meeting, the engineer provided an update of the estimated costs that we had previously estimated for the project, including new information based on the commitment that the USDA has made to finance the project and provide a grant, such that the total cost and cost per property is now estimated to be significantly less than presented last year.
The USDA’s commitment to provide a grant of up to $771,000 for the project, limits the amount estimated to be financed and required to be paid back to $2.894 million. The payoff period under the USDA financing is 40 years and the interest rate that they have committed to is 2 5/8%, lower than our estimate last year of 3%. Accordingly, the annual cost per unit, assuming 80 properties in the project, has decreased from our estimate of $1,862 per year to approximately $1,500 per year and the total principal per unit has decreased from approximately $43,000 to $36,000 per property. Click here for the Cost Estimate that was presented at the public meeting.
The project will bring year-round water service to all that elect to participate in the project and will of course also benefit the area with fire hydrants and adequate water pressure for fire-fighting purposes. Also, as discussed at the meeting, at some point, the current Hondius system will require replacement. It is likely well past its expected useful life and leaks are occurring on a frequent basis. If we do not replace the system now, we likely will be required to do so at some not too distant future date, and it would be difficult to match the kind of offer that we currently have on the table from the USDA.
The addition of properties to the project that are not currently Hondius water users will lower the average annual cost of the project for all participating (talk to your neighbors about the project – especially those not currently Hondius water system users). Additionally, the new system will put to rest any concerns over access to water in the future as the Town will take over the system, including future operating and maintenance costs. (We all will become water customers of the Town and subject to their normal billings, of course.)
All that sign up for the project will be responsible for replacing (if desired to deepen lines for winter use or necessary, e.g. due to shared services lines) current service lines to hook up to the new main lines and those who are not current Hondius water users will likely also have to pay a tap fee to the Town.
Given the offer from the USDA for this project, if it is approved by the Hondius users in this vote, drilling of new water wells will not be permitted and the current Hondius system will be abandoned. I believe this is an exceptional opportunity for us to obtain a long-term, reliable, safe water source and also to provide fire-fighting ability that we don’t currently have.
Please cast your ballot on this issue (if you did not already do so at the August 1, 2017 Annual Meeting), by printing this voting document, providing the requested information, and returning it to me at your earliest convenience but no later than August 15, 2017) via email to jim.redman28@gmail.com.
ONE VOTE PER HONDIUS PROPERTY IS REQUESTED, SO IF YOU ARE A MULTIPLE OWNER OF A PROPERTY, PLEASE COORDINATE YOUR VOTE SO THAT ONLY ONE VOTE FOR THE PROPERTY IS PROVIDED.
If you are unable to send the completed document to me via email, you can alternatively fax the document to me at (866) 347–3551 or mail to the following address:
Jim Redman
540 Laurel Lane, No. 7
Estes Park, CO 80517
Thank you.
Jim