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<br />Dolores Water Conservancy District - Dove Creek Secondary Water Supply System <br />July 28-29, 2003 <br /> <br />Agenda Item 211 <br /> <br />per annum. OWeD will provide $98,146, the 10 perdent local match needed for their portion of the . <br />project, either through tap fee revenues or OWeD funds. <br /> <br />Table 1 is a summary of the financial aspects of the project. A eWCB Small Project Loan of <br />$833,304 would have an annual payment of $113,905 (including the 10% reserve requirement) at <br />the loan terms of 3.00% for 10 years. <br /> <br />Table 1. Financial Summary <br /> <br /> <br />$981 ,450 <br />307 <br />$883,304 <br />$113,905 <br />$ 30.91 <br />$371.03 <br />$1.17 <br /> <br />The repayment of the project's construction is based upon securing at least 307 taps. DWCD will <br />not begin the project until 200 tap agreements are signed and secured by a promissory note, <br />secured by a deed of trust attached to the property. Total construction cost is estimated to be <br />$981,450. Tap fees are set at $3,200 per tap, so the first 200 taps will provide $640,000 as a basis <br />to start the project. These tap fees will be paid over the first five years of the project. (Residents <br />will be able to pay the $3200 to DWCD over a 5-year period at the same interest rate as the CWCS <br />loan.) In addition to these 200 taps, the DWCD will sell 107 additional taps (at a higher rate of . <br />$3,850 per tap) over the first five years of the project. <br /> <br />Table 2 indicates that the 307 taps will generate enough revenue to fully repay the project. <br />Table 2. Dove Creek Tap Fee Funding <br /> <br /># ofTaps Rate Total Income Terms <br />200 $3,200 $640,000 Payable 2003 to <br /> 2007 <br />107 $3,850 w/meter $411,950 Payable 2003 to <br /> charge . 2011 <br />Total: 307 . $1,051,950 2003 to 2011 <br /> ; <br />CWCB Loan $1,035,502 2006 to 2015 <br />Repayment . <br />Balance . $16,448 <br /> <br />The purpose of the CWCB loan of $883,304 is to u~-front fund the construction project. Tap fees, <br />payable over 7 years, will meet the 10-year loan repayment obligation of $1 ,035,502. DWCD Is <br />assuming the risk that they will be able to secure the additional 107 taps. In the event that less <br />than 307 taps are obtained, DWCD plans to require tap purchasers to pay an extra repayment <br />charge. <br /> <br />As security for the loan, the DWCD will pledge revenues from its Water Activity Enterprise, which <br />shall include the Dove Creek Secondary Water Supply System tap fees and operations revenues, <br /> <br />. <br /> <br />Page 4 of 6 <br />