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<br />VII-2 <br /> <br />, <br /> <br />and potential users were in favor of the proposed water system and were <br /> <br /> <br />willing to pay the aforementioned rates. The results of the postal <br /> <br /> <br />inquiry were: 100 in favor of the system <br /> <br />28 undecided <br /> <br /> <br />8 opposed <br /> <br /> <br />Based on the results of the inquiry letter, an attempt has been made <br /> <br /> <br />to keep the monthly service charge at about $13.50 for the year-round <br /> <br />users. <br /> <br />In Table VII-A several alternate financing plans are presented. Note <br /> <br /> <br />that the only plans which maintain the service charge at the desired level <br /> <br /> <br />would require a substantial F.H.A. grant. It also can be noted <br /> <br /> <br />that the alternatives of using privately sold general obligation bonds, <br /> <br /> <br />or of using a total F.H.A. loan, are economically infeasible. The fin- <br /> <br /> <br />ancing program that could be used and is discussed in detail hereafter <br /> <br />consists of a C.W.C.B. loan for one-half the project and an F.H.A. loan <br />for the other hal f. The proposed service charges with this program of <br />financing are $15.00 per month for year-round users, and $12.00 per month <br />for seasonal use rs . If the District were to decide that $13.50 per month <br /> <br />is the upper limit for users, it is possible that a "delayed repayment" <br /> <br /> <br />program could be worked out, whereby for the first few years debt ser- <br /> <br /> <br />vice repayment would be reduced and deferred to later years when more <br /> <br /> <br />users would make up the initial deficit. Table VI I-B summarizes an <br /> <br /> <br />initial budget with this financing, and based on these figures, the <br /> <br /> <br />water system becomes a feasible project to construct. Only in the first <br /> <br /> <br />six years is a small deficit encountered. This deficit is paid by the <br /> <br /> <br />Emergency Fund. If initial year break even is desired, it would only <br /> <br /> <br />be possible with slightly higher initial year service charges. Note <br /> <br /> <br />that there are no provisions for the use of tap fees for either 0 & M or <br /> <br /> <br />debt service repayment. No provision was made for the initial tap fees <br /> <br /> <br />because they are intended to be used for the establ ishment of the Emer- <br /> <br /> <br />gency Reserve-Replacement Fund. The amount of funds generated would be <br /> <br /> <br />$21,000 based on an initial number of 105 taps at $200/tap. $3,725 has <br /> <br /> <br />already been received by the District in the form of donations to be <br />