C150294 Feasibility Study - Laserfiche WebLink

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The primary sources of revenue that will be used for repayment are Service Fees and System Development Fees. Net Investment income and other miscellaneous revenue are also available for loan repayment. Cash reserves used for future capital projects are also available for repayment. One of the future capital projects may include the tentatively planned 2012 Ziegler Reservoir Enlargement Project. The 2009 Service Fee Rate structure and System Development Fee charges are included in Appendix B. The District bills on a quarterly basis. Financial Impacts and Need The DistricYs primary need for this project is to improve reliability by enabling the District to better respond to a catastrophic event that would render its direct flow sources untreatable or unavailable. A catastrophic event could be the result of drought, forest fires, raw water contamination or unacceptable raw water turbidities. As the District currently doesn't have stored water available, an interruption in direct flows could significantly impair the District in meeting its municipal demands. The District does not anticipate that additional assessments or increases in User Fees will be necessary to cover the expenditures for this project. Repayment Sources The District's primary sources of revenue that will be used for repayment are service fees and system development fees. Amendment One (TABOR~ Impacts The Snowmass Water and Sanitation District operates as an enterprise fund and in accordance with the Tabor amendment. As such the District has established emergency reserves of at least 3% of the Fiscal Year Spending excluding bonded debt service. The projected tax revenue to the District will remain the same. The District has primarily three saurc~s income: property taxes; system development fees and service charges. The ability to repay the loan will not require a tax increase. 11