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<br />. <br /> <br />City. Detailed engineering infonnation has been developed by the Corps' consulting engineer <br />(please see attached project summary). <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-tenn loan from the CWCB, an in-kind <br />construction grant from the U.S. Army Corps of Engineers, and revenues from the City's Parks <br />Fund (pool Department) budget. The City would now like to borrow $25,000 from the <br />Construction Fund to complete the project-funding package. Table 2 provides a summary of the <br />City's funding sources that includes borrowing money from the CWCB. <br /> <br />Table 2 <br />Proposed Funding Scenario <br /> <br />Year Project Component Amount ($) <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 City of Ouray Parks Fund (pool Dept.) Revenues 21,707 <br /> Total $133,450 <br /> <br />. <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 City Revenues from the Parks Fund (Pool <br />Department) which is already established. Revenues for this fund are generated by user visits for <br />swimming pool fees and locker rentals. Based on 1997 figures, the Parks Fund receives over <br />$500,000 on an annual basis. The estimated annual loan payment is $1,964 asswning a 20-year <br />tenn with an interest rate of 4.75 percent. The annual revenues for the project are therefore well in <br />excess of the estimated annual payments. Other than the requested CWCB loan, no other liabilities <br />would be incurred for this project. <br /> <br />. <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 />liability for the City. The existing structure is no longer structurally sound and is not adequate for <br />the deflection of flood and debris flow runoff for the protection of the City of Ouray. Previous <br />detailed analyses and past natural disasters on Skyrocket Creek have demonstrated the need for the <br />project. Alternatives to addressing the problem have been investigated, however the proposed <br />project has been recommended as the best alternative by the Corps of Engineers, and has been <br />recommended by the City. <br /> <br />3 <br />