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<br />, <br />. <br /> <br />.. <br /> <br />'- <br /> <br />Town of Kremmling <br />November 25-26, 2002 <br /> <br />Agenda Item 20d. <br /> <br />The sched.ule calls for completion of financial arrangements and engineering in early <br />2003. The project would be completed by June 2003, in time for summer. <br /> <br />Financial Analvsis <br />The total estimated cost of the project is $1.616 million, and the Town has requested a <br />Small Project Loan of $1.0 million, approximately 62% of the total cost. The Town plans <br />to increase its water rates to repay the CWCS loan. Funding includes participation by <br />the Grand River Ranch, which will also be benefited by the project. <br /> <br />Table 2. Sources of Funding <br /> <br />Entitv Grant Loan Contribution ParticiDation <br />CWCS $1,000,000 62% <br />DOLA $300,000 18.5% <br />Grand River $300,000 18,5% <br />Ranch <br />Town of $16,420* 1%* <br />Kremmlina <br />Total $300,000 $1,000,000 $316,420 100% <br />$1,616,420 <br /> <br />*The costs of permitting, water purchase and water court ($153,000) will be paid <br />separately by the Town of Kremmling, which will also be responsible for repayment of <br />the CWCD loan ($1 million.) Considering all these costs, the Town will ultimately be <br />responsible for approximately 72% of project funding, <br /> <br />Table 3 is a summary of the financial aspects of the project. The average monthly water <br />bill (per tap) would need to increase approximately $8.65 with a Construction Fund loan <br />of $1.0 million. <br /> <br />Table 3, Town of Kremmling <br />Financial Summary <br /> <br />Proiect Cost $1.616 million <br />CWCS Loan Amount $1.0 million <br />CWCS Loan Pavment (includes 10% reserve.) $65,558 <br />Current monthly water bill $25.00 <br />Monthly water bill with oroiect in olace $33.60 <br />Annual Loan Cost oer acre-foot (400 acre-feet proiect vield) $162 <br /> <br />The Town of Kremmling has median household income close to the statewide average, <br />and water from this project is used for municipal purposes. Staff is recommending the <br />standard CWCS loan terms of 4.25% for 30 years for this borrower. <br /> <br />Credit worthiness: The Town has existing debt with G.MAC. and DOLA on which all <br />payments have been made as agreed. Table 4 shows the Financial Ratios and <br />indicates, with the exception of cash reserves, all ratios in the average and strong <br />categories with the CWCS loan in place. CWCS debt will be on parity or in a superior <br />position with all existing debt. <br /> <br />3 <br />