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<br /> <br />. <br /> <br />. <br /> <br /> <br />. <br /> <br />'. <br /> <br /> <br />Design drawings will be prepared early next year for review by the SEa and CWCB <br />staffs. Construction is expected to start in September of2002 and should be completed in <br />November of2002. <br /> <br />Impacts and Permittinl! <br /> <br />A Corps of Engineers (CaE) 404 Permit will be required before construction can begin. <br />Consultation by the City with the CaE indicates that a Nationwide Permit may be <br />adequate for the project. The CaE will consult with the U.S. Fish and Wildlife Service <br />regarding threatened and endangered species in the project area. The project is not <br />expected to result in any significant impacts to the natural or man-made environment. <br /> <br />Loan Reauest <br /> <br />The City is requesting a loan of$420,000, which represents about 90 percent of the <br />planning, design and construction costs of the proposed project. The City will pay the <br />remaining ten- percent of project costs. Since the City is proposing a loan term often <br />years, the 30-year lending rate would be reduced by one-half of one percent. The 1990 <br />Median Household Income figure for Fountain is $23,733 indicating a Municipal Low- <br />Income lending rate. <br /> <br />Financial Analvsis <br /> <br />The City's Water Fund is an enterprise fund with revenues derived mainly from service <br />charges and tap fees. For the last several years, operating expenses have exceeded <br />operating revenues. The City therefore adopted a new schedule of service charges and tap <br />fees in June of this year. The new fee schedule will eliminate operating deficits in future <br />years. <br /> <br />Staff has analyzed the City's financial condition from audit reports for the year 2000 and <br />for previous years. The ratios were calculated per Board Lending Policy No.4 and the <br />figures for the year 2000 are displayed in Table 2. The table indicates that the operating <br />ratio (operating revenues to operating costs) was too low <br /> <br />Table 2. <br />City of Fountain Water Enterprise Fund <br />Financial Analysis <br /> <br /> <br />Weak Avera e Stron Year 2000 Future Year <br /><100% 100-120 % >120% 81% 113% <br /><100% 100-125% >125% NA 600% <br /><50% 50-100% > 100% 100% 63% <br />>$5,000 $2,500-$5,000 <$2,500 $0 $85 <br /> <br />As mentioned above, the City recently adopted a new water rate schedule. Table 2 <br />includes a future year with the new rate schedule and a time when CWCB loan repayment <br /> <br />3 <br />