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Town of Wiggins Agenda Item 28b <br /> March 22-23, 2017 Board Meeting (Updated March 23, 2017) <br /> Page 5 of 6 <br /> Financial Analysis <br /> Table 3 provides a summary of the Project's financial aspects. The Town qualifies for the low-income <br /> municipal interest rate of 2.40% for a 30-year term. <br /> TABLE 3: FINANCIAL SUMMARY <br /> Total Project Cost $2,385,000 <br /> CWCB Loan Amount $2,385,000 <br /> CWCB Loan Amount (including 1% Service Fee) $2,408,850 <br /> CWCB Annual Loan Payment $113,560 <br /> CWCB Annual Loan Obligation (1St Ten Years) $124,916 <br /> Monthly Cost of Loan per Tap (370 Taps) $28.13 <br /> Creditworthiness: The Town's water activity enterprise has $3,912,190 in existing debt made up of a <br /> water rights lease-purchase with a private party and two USDA Rural Utilities loans. Both USDA loans <br /> financed the Town's reverse osmosis water treatment plant. The Town is in good standing with all debt <br /> obligations. <br /> TABLE 4: EXISTING DEBT OBLIGATION <br /> Lender Original Current Annual Maturity Collateral <br /> Balance Balance Payments Date <br /> Private Lease $500,000 $364,642 $42,125 2029 NA <br /> USDA (2011) $3,327,000 $3,027,233 $126,626 2051 Water activity enterprise <br /> revenues <br /> USDA (2013) $549,000 $520,315 $20,446 2053 Water activity enterprise <br /> revenues <br /> TOTAL $3,912,190 $189,197 <br /> The Town's current water rates include a base fee of $69.50 per month and $3.20 per thousand gallons <br /> for a usage fee. The average water biLt is $98 per month. <br /> Construction has begun on the first development and 44 houses are stated to be built by the end of <br /> 2017. Town forecasts estimate the population will grow from 900 people to 2,280 people by 2027. With <br /> a current tap fee of $11,500, the additional 650 residential taps would provide $7,475,000 in revenue <br /> to the Towns water activity enterprise. This revenue is dedicated to water development investments <br /> including the development of the Knievel Farm project. To be conservative, the financial ratios do not <br /> take into account the forecasted growth but analyze the "Future w/ Project" using only the existing <br /> customers for the revenue base. <br />