C150237 Feasibility Study - Laserfiche WebLink

Home Browse Search

Loan Feasibility Study for Raw Water Acquisition and Utilization Page 42 With respect to developing future projections for expenditures including new debt service and determining their ultimate impact on the District's users, basic financial data is required at the onset. The District currently has 1,701 users connected to its system with an additional 137 ERUs based upon water consumption. Thus the total number of ERUs connected to the District's system is currently 1,838. COLOTRUST funds accrued specifically as a result of the revenues generated from the 3.000 mill levy stand at $325,565 as of July 2006. With the first CWCB loan payment projected to occur in 2011, additional proceeds will be contributed to that restricted account for the years leading up to that payment. The mill levy is projected at this time to generate approximately $66,000 of annual income (at current assessed valuation). Subtracting Fremont County's 3% fee for collection and handling, the District will net approximately $64,000 on average annually as available revenue toward debt service. As detailed in Table 13, the Series 2003 Water Revenue Bond will be retired in 2012. Thus beginning in 2013, the District will have on average approximately $171,875 of debt service freed up enabling the District to apply that amount toward serving the new CWCB loan. The District anticipates utilizing retained earnings to provide a similar order of magnitude of payment as that of the 2003 Refunding Bonds toward CWCB debt service in 2011 and 2012 with subsequent years utilizing the revenues that have previously been applied to the 2003 Refunding Bond issue. Based upon the areas in which available resources have been identified to apply toward debt service, Table 14 recaps both the available and additional funding that is required. Table 14 Penrose Water District Sources of Revenue for CWCB Debt Service Activity Cost New CWCB debt service (based on $8,757,000 at 3.25 1/o/30 years) $461,334 Savings on EMIAXSDA RD payments applied to new debt service ($21,689) Revenues applied to debt service from 3.000 mill levy average net annual income stream ($64,000) Payments applied from savings from retirement of 2003 Refunding Bond issue and cash on hand contributed for 2011 and 2012 ($171,875) Total Additional Required Revenue $203,770 With 1,838 ERUs connected to the system, the equivalent ERU cost per month for the added debt service will be approximately $9.24. The anticipation on the District board's part is that by 2010 in preparation for the first annual CWCB payment due in 2011, the base water charge or a combination of the base water charge and the consumptive charge will be modified to generate the equivalent of approximately $9.25 per ERU per month in added revenue. Colorado DOLA calculates average monthly household water service charges on an annual basis. For the year 2005, the statewide average monthly water bill was $32.45. That amount decreased from previous years based upon a decline in water charges as a result of drought related restrictions. In 2005, the audited average monthly ERU water bill in the Penrose Water District was $31.75. The projected ultimate increase of $9.25 per ERU for debt service will raise the average monthly water bill to $41.00. That amount Leonard Rice Engineers, Inc. August 2006 — 1018PEN05 GMS, Inc.