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<br />.. <br /> <br />Agenda Item 109. <br />January 24, 1996 <br /> <br />3 <br /> <br />Plans for water metering ($55K) and water plant upgrades ($486.4K) in the next 5 years could <br />add approximately $500K in additional debt for the Town's Water Enterprise. The annual <br />payment on this new debt would be about $32,500, and would amount to about $3.70 per month, <br />per customer. <br /> <br />Residents currently pay $16/month for water, and $14/month for sewer. Even if all new debt <br />service had to be repaid from a water rate increase, the new rate would be $21.70. (The <br />average water rate for the State is $33.15). <br /> <br />For 1995, the Town projects $87,000 in water service fees and $252,000 in tap fees will be <br />collected. <br /> <br />The Town of New Castle had a Median Household Income between 80% and 110% of the <br />Statewide MHI for 1990. A loan to the Town should thus be at the "Standard Income" rate of <br />5.25%, set by the CWCB November 1995. <br /> <br />STAFF RECOMMENDATION <br /> <br />The staff recommends: <br /> <br /> <br />1. That a construction fund loan in an amount of $266,250 not to exceed 75% of <br />actual total project costs, be approved for The Town of New Castle (and/or The <br />Water Enterprise for _The Town of New Castle) to rehabilitate the Town's Raw <br />Water Pipeline, and <br /> <br />2. That the fmancing terms shall be at an annual percentage rate of 5.25% <br />(equal to the "Standard Income" rate for a municipality as set by the CWCB <br />November 6, 1995), for a duration of 30 years, and <br /> <br />3. That loan approval shall be contingent upon completion of the feasibility study, <br />and upon all standard contracting provisions of the CWCB, as determined by the . <br />CWCB Director, and <br /> <br />4. That security for the loan shall be a collateral interest in the stream of income <br />derived by The Water Enterprise for The Town of New Castle from the sale of <br />water, and a CD in amount equal to one annual payment to be held by the State <br />Treasurer, and <br /> <br />, 5. That the loan may be used to refinance project costs incurred prior <br />contracting with the State, if approved by the Director of the CWCB. <br /> <br /> <br />AuachmenlS <br />C:lwp51IPROJ-NEWllOg.jan <br />