From the Rifle Citizen Telegram (Niki Turner):
The city wants to get the money for the plant through a $25.5 million loan from the Colorado Water Resources and Power Authority.
City officials have said the existing Graham Mesa plant is aging, undersized to serve projected population growth and unable to meet possible tougher federal water quality standards in the future.
Under the water rate structure approved earlier this year by council to help repay the loan and cover operating costs of the new plant, the base rate charged to city water users will nearly double, as of Sept. 1.
City Finance Director Charles Kelty said Tuesday that if voters approve the three-quarter cent sales tax measure in November, the second phase of the rate hike, due to take affect April 1, could be lowered. That would require City Council action sometime after the first of the year, he added.
Kelty said the bonds for the loan were sold last week and he expected to receive the paperwork this week. After those documents are signed by city officials and returned to the water and power authority, the closing date will be Aug. 14. No further action by council is needed to finalize the loan, he added.
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