Laserfiche WebLink
<br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />Response: <br /> <br />Comment 9. <br /> <br />Response: <br /> <br />Johnstown feels that there are no adverse economic, social, or physical impacts <br />created by the construction of the project. Since the project is largely a pipeline, most <br />of the infrastructure will be located underground, thereby creating no adverse impact. <br />Johnstown is not aware of any pending permitting requirements, court actions, or <br />agreements which would affect project implementation. There are several easements <br />being obtained through condemnation procedures. These should not effect project <br />implementation. <br /> <br />No financial analyses are given. ,4s a minimum, the feasibility study report should <br />provide the sources of financing f()T the project (in addition to a CWCB loan), <br />projected water system revenues and expenditures by year (including debt service) for <br />the period of CWCB debt retirement, and the financial impact of the project on total <br />debt and on water rates in the community. Some infonnation is provided in the 1993 <br />DLG credit report but it is insuffi(ient by itself and needs to be updated. <br /> <br />The following discussion provides a financial analysis of the impact of the Johnstown <br />Pipeline and Pumpstation Project~~ scoped by the CWCB Johnstown Construction <br />Fund. Johnstown is seeking final release of CWCB funding, for this project only, at <br />-- <br />this time. <br /> <br />2 <br />I <br /> <br />The original application submitted to CWCB by Johnstown in 1993 requested a <br />construction loan of $3.06 million. The CWCB Johnstown Construction Project Loan <br />was subsequently approved for $2.5425 million, not to exceed 75 % of actual <br />construction related costs (CWCB 1993). However, the project has since been <br />awarded to two different contractors. Projected costs have been revised downward to <br />$2.6 million to reflect actual construction bids. Table 1 summarizes the different <br />elements of current projected costs. <br /> <br />Johnstown will be servicing three different debt obligations with revenues from the <br />water enterprise fund. These include the CWCB loan, additional funding from the <br />authority for the same project (bond funding in the amount of $1. 785 million), and <br />existing general obligation bonds. Existing general obligation (GO) bonds were issued <br />February 25, 1993 for the purpose of constructing a second finished water tank (the <br />Town had one previously) and certain water plant modifications. These GO bonds are <br /> <br />9 <br />