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Town of Ridgway Lake Otonowanda Project <br />CWCB Loan Application <br />Attachment 6 - Financial Supplement to 2011 Applegate Engineering Report <br />Financial Supplement to 2011 Applegate Engineering Report <br />This Supplement, prepared by Town staff, is intended to provide the financial information, <br />required by the CWCB, that was not addressed in the Applegate Engineering Report. Technical <br />information about the need for the project, alternatives considered, and details about the <br />selected plan including environmental impacts are included in the Applegate Report. <br />Institutional Considerations <br />The Town of Ridgway through its staff including the Town Manager and Town Engineer will be <br />responsible for the design and construction management of the project. The Town will be <br />responsible for securing the financing for the project and for implementing the project <br />consistent with Town and funding agency requirements. The Town will bid out the construction <br />of the project consistent with Town and funding agency procurement requirements. The Town <br />will enter into contracts and agreements with the various entities for the services each <br />organization provides. <br />Financial Analysis <br />The Town submitted an grant application to the Gunnison Basin Roundtable for $60,000 and <br />the CWCB for $540,000 in grant funds from the Water Supply Reserve Account. The Roundtable <br />funds have been approved contigent on the Town securing the balance of the needed funding. <br />The Town also received a $19,600 grant to assist with the out of pocket costs for the design of <br />the renovations. The Town will be applying the CWCB for a low interest loan of $700,000 , to <br />the Department of Local Affairs for a $500,000 grant from the Energy and Mineral Impact fund <br />and to the River District for $100,000 toward construction. The Town staff will be preparing <br />most of the design documents and will be providing most of the construction management. A <br />3 %, $700,000, 30 year loan will require an annual payment of $35,500. The Town has about <br />600 users. The 3% interest rate is based on the assumption that Ridgway would qualify for the <br />Muncipal Middle Income rate. Using those numbers the loan would cost each about $5.00 per <br />month. Note that the 2012 Median Family Income is in the $68,300 category <br />(www.huduser.org). The following is a summary of the financial information: <br />