THE CITY OF CARLISLE OWNS AND OPRATES A WASTEWATER TREAT- MENT FACILITY (PLANT) SERVING A POPULATION OF 1,500. CARLISLE HAS BEEN ISSUED THREE NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM (NPDES) PERMITS BY THE U.S. ENVIRONMENTAL PROTECTION AGENCY (EPA). AS A RESULT OF EFFLUENT LIMIT VIOLATIONS, THE CITY HAS BEEN ISSUED THREE ADMINISTRATIVE ORDERS. THE LASTEST, ISSUED ON MARCH 21, 1985, PLACED THE CITY UNDER A SCHEDULE TO ACHIEVE PERMIT COMPLIANCE. THE CITY HAS FAILED TO COMPLY WITH THE ORDER. ON JULY 9, 1986, EPA HELD A SHOW CAUSE MEETING WITH THE CITY TO DISCUSS ITS NONCOMPLIANCE AND POSSIBLE EPA ENFORCE- MENT ACTION. AT THAT TIME, THE CITY CONTENDED THAT IT HAD INCURRED A $1,000,000 DEBT AND COULD NOT AFFORD TO CONSTRUCT ADDITIONAL TREATMENT UNITS. IN ADDITION, CARLISLE WAS NOT ON THE PRIORITY LIST FOR RECEIPT OF EPA GRANT FUNDS. CITY PERSONNEL, HOWEVER, WERE REPAIRING THE EXISTING SEWAGE COLLECTION SYSTEM.