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<br />4 <br /> <br />Water Supply Partnership Kit <br /> <br />The first repayment option is to repay the <br />costs over a period of 30 years from the date of <br />availability of the storage space. The date of <br />avaiJability is defined as the plant-in-service date of <br />the project or the date the first water supply <br />agreement in the project was signed, whichever is <br />later. The interest rate to use in this case will be <br /> <br />the rate as established by the 1958 Water Supply <br />Act for the date of initiation of project <br />construction. These interest rates are shown in <br />Table 2. If this repayment option is utilized, in <br />many cases the period left to repay the cost will be <br />less than 30 years. If this is the case, then another <br />option is available to the local sponsor. <br /> <br />Table 2 <br />1958 Water Supply Act Interest Rates <br /> <br />Fiscal Interest Fiscal Interest Fiscal Interest <br />Year Rate(%) Year Rate(%) Year Rate(%) <br />1959 2.670 <br />1960 2.699 1970 3.342 1980 7.250 <br />1961 2.632 1971 3.463 1981 8.605 <br />1962 2.742 1972 3.502 1982 9.352 <br />1963 2.936 1973 3.649 1983 10.051 <br />1964 3.046 1974 4.012 1984 10.043 <br />1965 3.137 1975 4.371 1985 10.898 <br />1966 3.222 1976 5.116 1986 11.070 <br />1967 3.225 1977 5.683 <br />1968 3.253 1978 6.063 <br />1969 3.256 1979 6.595 . <br />. <br /> <br />The second repayment option is to <br />permit the repayment of costs over a 30-year <br />period at the repayment rate as prescribed in <br />Section 932 of WRDA '86. In this case, the rate <br />will be the rate that is current as of the time of <br />signing of the water supply agreement. This rate <br />will be adjusted at 5-year intervals over the <br />repayment period. The rate will be increased by <br />one-eight of one percentage point for transactions <br />costs. These rates are shown in Table 3. In this <br />table, the rates have been increased to include the <br /> <br />transaction factor. While these rates are not <br />applicable to what rates may be in the future, they <br />do give an indication of what the past rates have <br />been and the fact that they can vary significantly <br />from one year to the next. The interest rate <br />formula is defined in the 1958 Water Supply Act, <br />as amended, that is provided in Appendix A. <br />