The Town of Lusk's water supply system is supplied by five wells which
are over 40 years old. Water is conveyed to the town through a pipeline
with lead joints to their storage tanks. The town is having some
difficulty meeting the EPA safe drinking water requirements.
The town has a current population of 1504, and serves 815 taps through
their municipal water system. They are presently able to meet existing
demands, however, anticipated growth may exceed present supplies.
The Level II study conducted in 1995 involved construction of a successful
well, and preparation of conceptual designs and cost estimates for needed
system improvements. Recommended improvements include modification and
additions to their system to incorporate the new well, a new storage tank,
improvements to their existing tank and additions to their transmission
system. Improvements to the distribution system are also recommended, but
are not eligible for WWDC financing.
With Level III funding, the sponsor has begun designing the project.
Funding has been secured from USDA Rural Utility Service and is being
sought from the Wyoming Farm Loan Board. Additional funding for a new
storage tank is being sought from the WWDC. Construction is anticipated
to begin in 1997. The 1996 WWDC appropriation is adequate to finance a
pump, controls, and pipeline to incorporate the new wells into the system.
However, additional funding is needed to construct a new storage tank,
pipeline, and appurtenances necessary to place the project into service.
RECOMMENDED LEGISLATIVE ACTION:
The Commission recommends that the Level III appropriation be amended to
increase the appropriation from $420,000 to $709,000. The financing plan
is a 67% grant of $540,020 for WWDC eligible components and a loan of
$168,980 at an interest rate of 4% for 20 years. The sponsor is also
required to reimburse the WWDC for 33% of the Level II well construction
costs ($30,000, 4%, 20 years).