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<br />Chapter VIII - Financial Analysis for the L TWD <br /> <br />Chapter VIII - Financial Analysis for the L TWD <br /> <br />The overall financial situation for the LTWD is consistent with that described in the original <br />2002 study with the exception of two changes. These changes include the re-funding of two bonds <br />from 1995 and 2000 and the new issue of two bonds in 2004. This will result in a reduced annual <br />debt service payment. The average annual savings will be approximately $268,000 between 2005 <br />and 2014 for the 1995 bond refunding and $73,000 between 2005 and 2020 for the 2000 bond <br />refunding. A spreadsheet showing a yearly breakdown of the debt re-funding and new debt due to the <br />new loans is included in Appendix B. Also included in this appendix are the LTWD financial <br />statements for the years ending 2003 and 2004. <br /> <br />Table VIII-I presents the annual expenditures and revenues for the LTWD. It is assumed that <br />LTWD will make their first payment in 2007 based on the assumption that the project is completed <br />in 2006 and since CWCB payments must start one year after the completion of the project. The <br />annual revenues and expenses shown in Table VIII-I are based on the 2004 financial statement. The <br />debt service is based on the debt described above plus other outstanding bonds, the last of which <br />expires in 2021, and the annual debt of$291,012 for the 2002 CWCB loan. The annual revenues are <br />based on 2004 income plus a 12 to 20 percent increase in water rates and additional income as a <br />result of future tap fees. The annual revenue is then assumed to be constant, however additional <br />adjustments may be necessary on a year-by-year basis. The expenses are based on 2004 operating <br />expenses, less depreciation, plus 0.5 percent annual increases over the debt period. <br /> <br />Dry Creek Reservoir Project <br /> <br />24 <br /> <br />SClVLE <br />