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<br />Evaluation of Alternatives, continued <br /> <br />The Town of Dove Creek does not have the manpower and the financial means to <br />develop and operate the secondary water supply system. The DWCD is able to use it own <br />manpower to construct and operate the system. That makes the project affordable and the <br />best alternative. <br /> <br />Financial Analysis <br /> <br />The following financial information is provided in the Appendices: <br /> <br />1. Preliminary Cost Estimate of the Construction Project (Appendix C) <br />2. Analysis of the Funding Needs for Dove Creek Lawn and Garden <br />System (Appendix C) <br />3. Sample Bill (Appendix C) <br />4. Draft Project Development Budget and Cash Flow (Appendix D) <br /> <br />The repayment of the project's construction is based upon securing at least 200 taps. That <br />is so important to the success of the project, that DWCD will not begin the project until <br />200 tap agreements are signed and secured by a promissory note. Total construction cost <br />is estimated to be $981,450. Tap fees are set at $3,200 per tap, so the first 200 taps gives <br />us $640,000 as a basis to start the project. These tap fees will be paid over the first five <br />years of the project. In addition to these 200 taps, the DWCD will sell 107 additional taps <br />(at a higher rate-- $3,850 per tap) over the first five years of the project. The 307 taps will <br />generate enough revenue to fully repay the project. See the chart below for the details: <br /> <br />Tap -Fee Funding <br />For <br />Dove Creek Secondary Water Supply System <br /> <br /># of Taps Rate Total Income Terms <br />200 $3,200 $640,000 Payable 2003 to <br /> 2007 <br />107 $3,850 wi $411,950 Payable 2003 to <br /> meter charge 2011 <br />Total: 307 $1,051,950 2003 to 2011 <br />CWCB Loan $1,035,502 2005 to 2014 <br />Repayment <br />Balance $16,448 <br /> <br />5 <br />