C150295 Feasibility Study - Laserfiche WebLink

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The Town of Dillon is Yequesting a loan in the amount of $1,500,000 for 30 yeaxs at the interest rate of 4% with an annual debt payment of $86,745. The Town will pay cash foY the design, engineeYing, peYmitting ($213,000) and CWCB loan fee ($15,000) for a Town match of 15%. The annual debt service payments will be paid thYOUgh the collection of water capital fees and water tap fees. The current users will be paying $51.18 per year to fund the annual debt service payment. The Town anticipates raising the capital fee by $1 per EQR each yeax and raising the tap fees by 3% each year. The Watex Fund is an Enterprise Fund and is self-supporting with reserves of three months of operating expenditures. The 30 year plan outlines the revenues and expenditures foY the Watex Fund until the end of the CWCB loan (see 1-Ylater Fund 30 Year Plan, Exhibit T). The 30 yeax plan shows that the Town's resouYCes are adequate to cover the e~c~isting annual debt service and the new proposed debt service with scheduled capital projects for the next seven years. Aftex 2015 the available cash balance each yeax is sufficient to support futuYe capital project needs. The following is an explanation of revenues, expenditures and xeserves outlined in the 30 yeax plan. Kevenue.r • voluxne chaYge fYOm customeY's wateY usage with a 2% inflation factor • standby fees anticipated to be eluninated in 2015 as vacant properties are built on • capital fees incxeased at $1 pex EQR per month plus incxeases for new EQRs coming on line • tap fees increase at 3% per yeax plus new EQRs in 2013 for buildout along Highway 6 • inteYest eaYnings include inteYest on cash balances and intexest and penalties for late water customex payments with a 2% inflation factor • loan proceeds in 2010 repYesent the CWCB loan Yequest fox the ODR expansion • Cuxb stop payments will be elimuzated in 2010 as customers' payments for the replacement of their cuxb stops will be complete • Cross connection fees are paid by customexs to have their backflow prevention devices tested each yeax by town staff with a 5% inflation factoY. E.xpenditure,c • Operational expendituYes including maintenance with a 2% inflation factor • Capital projects are scheduled over the next seven years. In addition the micxofiltration membxane replacements are included every ten years (2014, 2024, 2034) and two vehicle replacements every ten yeaxs (2012, 2017, 2022, 2027, 2032, 2037) • Debt service includes the 2002 Micxofiltrarion Loan with the Coloxado Watex Resource and Power Development Authority with annual debt service of $145,236, maturity 11/2012 and the Lot 50 loan with Wells Fargo Brokerage Services with annual debt service of $18,547, maturity 3/2014. Ke.rerue.r • 10% of the CWCB annual debt service payment fox the first ten yeaYS (2010-2019) • Three months of opexating expenditures. 17