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Lookout Mountain Water District Agenda Item 7a <br /> November 18-19, 2015 Board Meeting (Updated November 20, 2015) <br /> Page 5 of 6 <br /> TABLE 4: FINANCIAL SUMMARY <br /> Total Project Cost $3,410,000 <br /> Borrowers Contribution (6%) $216,000 <br /> DOLA Funding (4%) $125,000 <br /> CWCB Loan Amount (90% of Project cost) $3,069,000 <br /> CWCB Loan Amount (Including 1% Service Fee) $3,099,690 <br /> CWCB Annual Loan Payment $163,297 <br /> CWCB Annual Loan Obligation (including reserve account) $179,627 <br /> Monthly loan obligation per tap (502 active taps) $29.82 <br /> Project cost per acre-foot of storage added (134.2 acre- $25,410 <br /> feet) /acre-foot <br /> The District commissioned a rate study to analyze necessary rate increases to accommodate a new loan <br /> and plans to increase rates to cover the additional debt service. The District plans to increase water <br /> rates 9.75% annually for the next three years, raising rates so as to operate in accordance with debt <br /> service coverage requirements, maintain adequate reserves, and fund operating and capital costs. <br /> Creditworthiness: <br /> The District has four existing loans as shown in Table 5. The District is in good standing on its loans and <br /> has re-financed its general obligation bonds twice to reduce total costs and maturity date. <br /> The District is in repayment and in good standing on CWCB Loan C153598, which partially funded <br /> improvements to Upper Beaver Brook Dam in 1992, including land, water rights, the rock-cut spillway, <br /> a 26-foot raised embankment, and other associated improvements. <br /> TABLE 5: EXISTING DEBT <br /> Maturity Original Loan Annual Collateral <br /> Loan Date Balance Balance(') Payment <br /> C153598 Improvements to 2022 $600,000 $225,847 $39,031 Enterprise <br /> Upper Beaver Brook Dam Revenues <br /> DOLA Sub district A 2024 $400,000 $225,288 $31 696 Enterprise <br /> (water main extensions) Revenues <br /> Wells Fargo <br /> (membrane filtration 2019 $1,213,500 $476,621 $132,700 General Funds <br /> improvements) <br /> Chase Bank 2018 $200,000 $119,726 $42,624 General Funds <br /> (service meter upgrades) <br /> Totals $1,047,482 $246,051 <br /> (1) Loan balances are end of year 2015 projected balances <br />