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<br />Preliminary Water Rate Analysis <br />The City contracted with FCS Group to analyze the rate/SDC impacts of the <br />Department’s determination on our existing CIP, along with the impacts of abandoning <br />future groundwater development in favor of building the pipeline. These preliminary <br />results show that elimination of the most productive areas from our groundwater <br />development plans drastically increased the cost of development, transmission and <br />treatment of future wells due to lower yields (more wells required to meet the same <br />demand) and increased piping and treatment costs. The overall result of the GSI report, <br />WRD determination, and financial analysis has increased the City’s desire to construct <br />the pipeline as our best, and perhaps only, viable long-term water supply option. <br /> <br />USDA Grant/Loan Approval <br />On August 10, 2010, the City received notification from USDA that our application for <br />funding was approved. The funds are a combination of $13,033,000 in loans and <br />$2,649,000 in grants. These funds must be expended by August 2015, a five(5) year time <br />limitation. <br /> <br /> <br />