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<br />. <br /> <br />City. Detailed engineering information has been developed by the Corps' consulting engineer <br />(please see attached project summary). <br /> <br />If the existing deflection structure is not upgraded and happens to fail during a flood event, the <br />Corps of Engineers computed flood/debris flow damages in the amount of $426,352. This damage <br />estimate is approximately 3.2 times the project cost. A typical benefit-cost ratio was not <br />specifically computed, however the Corps used a "risk-based" approach to determine that the <br />project is indeed economically feasible. <br /> <br />FINANCING ARRANGEMENTS <br />The City is arranging for various funding opportunities and project cooperators at the present time. <br />The proposed funding package consists of a long-term loan from the CWCB, an in-kind <br />construction grant from the U.S. Army Corps of Engineers, and an Energy Impact grant from the <br />Colorado Department of Local Affairs. The City would now like to borrow $25,000 from the <br />Construction Fund to complete the project funding package. Table 2 provides a summary of the <br />City's funding sources that includes borrowing money from the CWCB. <br /> <br />Table 2 <br />Proposed Funding Scenario <br /> <br />. <br /> <br />Year Project Component . Amount ($) <br />1999 CWCB Construction Fund Loan 25,000 <br />1999 U.S. Army Corps of Engineers in-kind 86,743 <br /> construction match <br />1999 Energy Impact grant, Department of Local Affairs 21,707 <br /> Total $133,450 <br /> <br />FINANCIAL ANALYSIS <br />The total cost of the entire project is approximately $133,450. The Board's investment in the <br />project would total $25,000 if the loan request were approved, which is about 19 % of the total cost. <br /> <br />The source for repaying the loan will consist of Revenues from the Parks Enterprise Fund which is <br />already established. Revenues for this fund are generated by user visits for swimming pool fees <br />and locker rentals. Based on 1997 figures, the Parks Enterprise Fund receives over $500,000 on an <br />annual basis. The estimated annual loan payment is $1,964 assuming a 20-year term with an <br />interest rate of 4.75 percent. The annual revenues for the project are therefore well in excess of the <br />estimated annual payments. Other than the requested CWCB loan, no other liabilities would be <br />incurred for this proj ect. <br /> <br />DISCUSSION <br />CWCB staff believes that the City's proposed deflection structure rehabilitation project is <br />economically, financially, and technically feasible. The investment is not unusually high compared <br />to most other similar projects, and the repayment of the loan will only result in a small annual <br /> <br />. <br /> <br />3 <br />