C150294 Approval Letter

• Contract/PO #: C150294
• Contractor Name: Snowmass Water & Sanitation District
• Contract Type: Loan
• Water District: 0
• County: Pitkin
• Loan Projects - Doc Type: Approval Letter

Snowmass Water & Sanitation Disfict
May 12, 2009 (UPDATED May 22, 2009)
Page 4 of 5
Project Cost Estimate
1400 ft of 16 inch Pipe
3,000 GPM Pump Station
Flow Control Building
Old Divide Box
Power Supply & WTP Modifications
Sub Total
20% Contingency
Tota1
$690,000
$365,000
$276,000
$25,000
$435.000
$1,791,000
358 000
$2,149,444
Agenda Item 17f
Final design is near complete and construction is scheduled to begin this summer and completed by
the end of 2010.
Financial Analysis
Table 1 shows a summary of the financial aspects of the loan request. The interest rate for the
Town is based on Municipal - High Income interest rate for a 30 year loan of 4.5% and reduced to
4.25% for a 20 year loan. (Financial Policy #7).
Table 1. Financial Summary
PROJECT/LOAN
Pro'ect Cost $2,149,000
CWCB Loan $1,933,470
CWCB Loan (Including 1% Service Fee) $1,952,805
CWCB Annual Loan Payment $122,300
CWCB Loan Obli ation (including 10% debt reserve fundin ) $134,600
Number of EQR's or Ta s 5,000 EQRs
Annual Loan Payment per EQRs or Taps $27/EQR
Creditworthiness: The District operates its enterprise (water and wastewater) as self supporting.
Revenues received from user fees and other general fund sources are sufficient to cover operating
expenses, as well as assist in the funding of capital improvements.
The District will repay the loan from funds available through a collection of service fees and system
development fees. If that funding source is not adequate, the District will increase water service
rates to provide funds sufficient to meet the CWCB loan debt service. The District maintains an
emergency reserve fund of at least 3% of the fiscal year spending per TABOR requirements.
The District has one long-term debt with a balance of $2.6 million with annual payments of
$600,000 and a maturity date of 2013. This is a General Obligation Bond and is not included in debt
service calculations since property tax revenues are specifically dedicated to repayment of this loan
and revenues are not likely to continue after the bond is paid off.