Laserfiche WebLink
<br />" <br /> <br />Town of Frederick - Mllavec Lake Rehabiiltatlon <br />January 22.23, 2003 <br /> <br />Agenda Item 19b <br /> <br />primarily of sandy material that could be easily excavated to increase reservoir storage, The <br />proposed project will increase storage by a total of 275 acre-feet from removal of material. <br /> <br />. <br /> <br />The Total Project cost, based on updated engineer's opinion of cost, is estimated to be: <br /> <br />TOTAL <br /> <br />$1,210,000 <br />125.000 <br />$ 1,335,000 <br /> <br />1, <br />2, <br /> <br />Construction - Slope Liner and Excavation <br />Engineering Fees <br /> <br />Schedule - The project is schedule to begin construption in March 2003. Design approval by the <br />SEO is expected in February 2003. No permitting is.sues have been identified, and consultation <br />with the U.S. Army Corps of Engineers has indicated that several wetlands identified on the site are <br />non-jurisdictional. <br /> <br />Financial Analvsis <br /> <br />The total estimated cost of the project is $1,335,000. The Town qualifies for the Municipal High <br />Income interest rate. Staff is recommending a loan.for a maximum amount of $1 ,000,000 <br />(approximately 75% of estimated project cost) for 20 years at an interest rate of 4.5% per annum, <br />The Town has budgeted the $335,000, the 25 percent local match needed for their portion of the <br />project, and the money is in place in Water Fund reserves for that purpose. The current water <br />rates are sufficient to support the loan payment, and no rate increases are necessary to complete <br />this project. <br /> <br />Table 1 is a summary of the financial aspects of the project. A CWCB Small Project Loan of . <br />$1,000,000 would have an annual payment of $84,564 (including the 10% reserve requirement) at <br />the loan terms of 4.5% for 20 years. <br /> <br />Table 1. Financial Summary <br /> <br /> <br />$1,335,000 <br />4000 <br />1700 <br />$1,000,000 <br />$84,564 <br />$30 <br />$4.15 <br />$23.49 <br /> <br />Creditworthiness: The Town currently has two outstanding bonds issues. One is a 1978 Water <br />System Improvement Bond with a remaining amount of $314,000, maturing in 2028 with an annual <br />payment of $29,000. The second is a 1993 General: Obligation Water Refunding Bond with a <br />remaining amount of $870,000, maturing in 2008 with an annual payment of $157,000. Annual <br />payments on both bonds total $186,000. CWCB would require parity of pledged water revenues <br />with these bonds. <br /> <br />Table 2 shows the Financial Ratios for the Town and indicates strong ability to repay the . <br />$1,000,000 CWCB loan, The analysis includes the projected $42,000 in cost savings from the use <br />of non-treated irrigation water (300 acre-feet.) <br /> <br />Page 4 of 6 <br />