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<br />Chapter VII - Financial Requirements
<br />
<br />Chapter VII - Financial Requirements
<br />
<br />The LTWD and CWCWD are requesting funding through the CWCB Construction Fund
<br />Loan Program. In 2002 the Districts were approved for a loan of $7,875,000, or $3,937,500 to each
<br />District, based on an estimated project cost of about $10,500,000. The loan approval memo is
<br />presented in Appendix A. As explained previously, the project costs have increased to an estimated
<br />total of $21,600,000. As a result, each District is pursuing an additional $4,994,995 for their
<br />respective portions of the project.
<br />The additional loan amount is based on the total project cost of $21,600,000, subtracting the
<br />original 2002 $10,500,000 loan, dividing by two for each Districts' portion and multiplying by 90
<br />percent or the amount that the CWCB will allow for the new loan. The CWCB requires a 1 percent
<br />loan service fee. Therefore, each District is requesting a loan of $4,994,995 (this includes a loan of
<br />$4,945,500 plus the service fee of $49,455) for a combined request of $9,989,990.
<br />The division of LTWD and CWCWD taps by each governmental jurisdiction have been
<br />updated to 2004 numbers. The CWCB current middle-income municipal rate is 3,75 percent and the
<br />high-income rate is 4.25 percent based on a 30-year loan. There is a 0.25 percent reduction for a 20-
<br />year loan, therefore the LTWD is applying for a 3,60 percent blended interest rate and the CWCWD
<br />is applying for a 3.70 percent blended rate, each over a 20-year term. At these rates, the annual loan
<br />payment would be $351,127 and $354,298 for LTWD and CWCWD, respectively. The total cost to
<br />each District, including all loan interest and service fees, is listed in Table VII-I.
<br />
<br />Table VII-I: Summary of Costs to LTWD and CWCWD
<br />
<br />Description L TWD Estimated Cost CWCWD Estimated Cost
<br />2002 CWCB Loan @ 75% $3,937,500 $3,937,500
<br />2002 Remaining Cost @ 25% $1,312,500 $1,312,500
<br />2002 CWCB Loan Interest $1,882,740 $1,934,300
<br />2005 CWCB Loan @ 90% $4,994,995 $4,994,995
<br />2005 Remaining Cost @ 10% $555,000 $555,000
<br />2005 CWCB Loan Interest $2,077,040 $2,140,460
<br />Total Project Costs $14,759,775 $14,874,755
<br />
<br />Dry Creek Reservoir Project
<br />
<br />22
<br />
<br />/BOYLE
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