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Town of La Veta <br />January 13, 2012 (Updated January 31, 2012) <br />Page 4 of 5 <br />TABLE 2: TOTAL PROJECT COST SUMMARY <br />Agenda Item 26a <br />TasC,�x�,� <br />Cos�s� <br />Borrower Contribution <br />$41,000 <br />CWCB Loan Amount (90% of total Project cost) <br />$369,000 <br />Engineering <br />$119,600 <br />Construction <br />$246,400 <br />Contingency (12 %) <br />$44,000 <br />Total <br />$410,000 <br />Engineering expenses include the initial feasibility analysis, preliminary geotechnical analysis, <br />engineering design, coordinating SEO approvals, construction inspection, As -Built record drawings, <br />and development of an emergency action plan. <br />Financial Analysis <br />The Town qualifies for an interest rate of 3.00% based on the low- income municipal base rate of <br />4.00 %, for a 30 -year term, and a 1% restricted reservoir rate reduction in accordance with CWCB <br />Financial Policy #7. Table 3 provides a summary of the financial criteria of the loan request. <br />TABLE 3: PROJECT FINANCIAL SUMMARY <br />Total Project Cost <br />$410,000 <br />Borrower Contribution <br />$41,000 <br />CWCB Loan Amount (90% of total Project cost) <br />$369,000 <br />CWCB Loan Amount (including 1% Service Fee) <br />$372,690 <br />CWCB Annual Loan Payment <br />$19,014 <br />CWCB Loan Obligation (including 10% debt reserve funding) <br />$20,916 <br />Number of EQRs <br />580 <br />Annual Cost of Project (average increase in monthly water bill) <br />$3.01 <br />Total Cost of Project (per EQR) <br />$707 <br />Creditworthiness: <br />The Town operates its water services through a Water Enterprise, generating revenues through <br />water sales and development fees. The Enterprise has sufficient cash reserves on hand to fund its <br />portion of the Project. Its annual surplus of revenues after paying operational, maintenance and <br />debt service expenses has averaged $79,000 from 2009 -2010. <br />The Town has one outstanding loan with the Colorado Water Resources and Power Development <br />Authority (CWRPDA) for water system improvements and to upgrade the main line extension <br />through Main Street. The loan has a remaining balance of $1,102,604 and an annual payment of <br />$50,117. The loan is in good standing and has a maturity date of May 1, 2039. <br />