OPHIR – The tiny town of Ophir, pop. 174, give or take a few, may receive a no-interest loan to pay for improvements to the town’s water system.

The town was recently notified by the Colorado Department of Public Health and Environment that, assuming it meets specified technical criteria, it is eligible for federal stimulus funds via the American Recovery and Reinvestment Act.

“This is fabulous news,” said Ophir Mayor Randy Barnes. “Our timing is perfect. We have just completed engineering and permitting work for our much-needed municipal water system improvements and this low-interest, federally-supported funding option would represent a major bonus to our repayment scheme.”

The federal support comes Ophir’s way by means of a $500,000 loan at zero percent interest. The deal would save the town $125,000 in interest payments over the twenty-year term of the loan, interest that is anticipated in the language of a measure on the town’s November ballot.

That measure, if approved, rededicates an existing mill levy to the repayment of a loan for improvements to the water system. Now, thanks to the federal stimulus, Ophir voters can vote yes without incurring interest on the loan.

The improvements to the water system establish Waterfall Creek as the town’s primary water supply, addressing concerns about the existing water system, which is taps groundwater from Warner Springs on the north side of town. As part of the proposed project, Waterfall Creek would become the Town’s primary water source, with Warner Springs available as a redundant source.

The town has very senior water rights on Waterfall Creek, and has rights to sufficient water flow to meet future town needs. Waterfall Creek also provides much softer water than Warner Springs, which currently causes build-up of minerals on plumbing and household appliances.