Laserfiche WebLink
<br />,- <br />,. .. <br /> <br />736-- <br /> <br />DRAFT <br />-::r <br />March), 1997 <br /> <br />SU22ested Scope of Work for Town of Johnstown Fianacial Analvses <br /> <br />Objectives <br /> <br />The objectives of these analyses are to: (1) assess the overall impact of the Golden <br />Technology Corp. (GTC) plant closing on the economy of the Town of Johnstown, <br />(2) analyze the specific impact on the Town's water fund, and (3) propose various <br />measures for dealing with the impacts identified above by the use of different financial <br />scenanos. <br /> <br />Analvses <br /> <br />The following analyses are proposed: <br /> <br />1. An economic analysis will be conducted of the general impact of the GTC <br />plant closing in terms of employment, tax base, and loss of Town revenues. <br /> <br />2. An analysis of the specific impact of the GTC plant closing on the Town's <br />water fund will be conducted in terms of expected reductions in revenues both <br />from GTC as well as from any expected loss in residential and commercial water <br />users. <br /> <br />3. A number of different scenarios will be developed using assumptions derived <br />from the preceding analyses to evaluate various measures the Town might use to <br />ensure that water system revenues will be adequate to pay all operating expenses, <br />contingencies, debt service, and debt service reserve funds for the foreseeable <br />future, Some variables which might be included in such analyses are: <br /> <br />A change in the terms of the CWCB Construction Fund loan, <br /> <br />Changes in the repayment schedule on the Water & Power Authority <br />bonds by using unspent project funds to defease bonds, <br /> <br />Uses of the water fund reserve account, <br /> <br />Increases in water rates to include consideration of the impact of price on <br />total water use, and <br /> <br />Possible compensation by GTC for losses in revenues. <br />