One stated goal of the Local Option Tax is to get the city in a financial position to take advantage of grants for extending the water system and developing a sewer system.

Mountain Waterworks provided information to the City regarding the available funding sources , long-term debt commitment and future water rates..

The following two tables are from the information provided to the city regarding the water system

This table shows the long term debt of 30 years using state funding.  A need for 60% debt if using USDA Rural Development Program combined with a 30 to 40 percent grant.

The available funding is a combination of grants and financing requiring the city to meet the stipulations of the grant requirements, most generally being forced connections and water meters as well as taking on new debt

This table below provides information on the needed water rates and emphasizes that grant funding would require a 60% loan.

The City of Crouch entered into an agreement to acquire the domestic water system in the downtown area.

At the city council meeting held on 6/27/2019, Mountain Waterworks made a presentation to the city council where they stated:

Although the City owns and operates the existing water system, the customers that are provided water cannot affordably sustain the system on their own.  Without additional customers, the water system is NOT a sustainable City asset, but rather a liability.

 The following additional information was provided:

Alternative Summary:

In order to maintain a viable water system, the City must add customers and generate enough revenue to pay for the capital costs, operation and maintenance, and future replacement of the system.

Four alternatives were evaluated:

• Alternative 1 – Provide service to up to 25 EDUs
• Alternative 2 – Upgrades required to provide service to approximately 115 EDUs
• Aternative 3 – Regionalization or divestiture of system
• Alternative 4 – No Action Alternative (continue as is)

The city formally selected Alternative 2 as the preferred alternative.

The City of Crouch currently has approximately 125 to 150 parcels, of which not all are developed.  The city currently is providing water service to approximately 8 to 15 users.  If it is the goal of the city to expand the water system and meet the system size requirements of any grant, the city needs to acquire additional water customers.

Considering that Mountain View subdivision has approximately 50 parcels and an operational water system, the intended course of action is that the city acquires the system owned and maintained by the Mountain View Subdivision.

The question that follows is:

Will Mountain View Subdivision be willing to give control and management of their community water system to the city?