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<br />Discussion <br /> <br />. ~)." <br /> <br />The District is now requesting an additional $770,000 for the project for a total Severance <br />Tax Trust Fund loan of$I,500,OOO (about 75 percent of total project costs or 87 percent <br />of design and construction costs). The District will make formal application to the <br />Department of Local Affairs (DOLA)in April of this year for an Energy Impact <br />Assistance loan of $215,500. Both the eWeB and DOLA loans are intended to be used <br />for design and construction costs. The Town of Frederick is proposing to contribute the <br />land component of the project with an estimated value of $350,000. Potential funding <br />sources are summarized in the following table. <br /> <br />WCTASD Regional Detention Pond <br />Potential Sources of Funding <br /> <br />Source <br /> <br />eweB loan <br />Dept. of Local Affairs, Energy Impact funds <br />Town of Frederick, land contribution, <br />Total <br /> <br />Amount <br />$1,500,000 <br />$215,500 <br />$350,000 <br />$2,065,500 <br /> <br />One of the conditions of the Board's recommendation in January was that final loan <br />approval would be conditioned upon the District's ability to demonstrate to the Board's <br />satisfaction that the proposed project is fmancially feasible. Since January, the District <br />and the District's consultant have submitted additional information to staff regarding the <br />financial feasibility of the project. <br /> <br />The District's Stormwater Enterprise Fund, established in 1999, is the entity that would <br />have primary responsibility for repayment of the project loan. The Storm water Enterprise <br />currently assesses a service charge of $4.00 per month on each of the existing 1,275 taps <br />in the District. <br /> <br />The $4.00 service charge, however, is inadequate to repay the eWCB and DOLA loans <br />so, on March 8 of this year, the District board acting on behalf of the Stormwater <br />Enterprise adopted a resolution to impose a new stormwater impact fee of $650 on each <br />new tap in the District. The resolution further provides that, in the event impact fees are <br />inadequate, the Stormwater Enterprise will increase monthly service charges to cover <br />debt service. <br /> <br />The District and the District's consultant submitted a revised 32-year cash flow <br />projection for all revenues and expenses of the Storm water Enterprise through the period <br />of eWCB debt retirement. The projection assumes 84 new taps per year over the next ten <br />years with no new taps thereafter. The revised cash flow projection indicates that the <br />project is financially feasible. <br /> <br />2 <br />