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<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 />1 <br />1 <br /> <br />backed by the full faith and credit of the Town, and, as such, may be retired with <br />funds raised through property taxes. However, Johnstown plans on retiring the bonds <br />with water enterprise fund revenue. All three debt streams are factored into the <br />financial analysis_ Johnstown prefers to rely primarily on the CWCB loan for the <br />pipeline and pump station project because of lower interest rates and payments. As a <br />result, financing up to 75% of expected project costs (75% of $2.6 million = $1.95 <br />million) is projected to come fronl the CWCB loan and the remaining $650,000 is <br />expected to come from the Authority bond issue. <br /> <br />Tables 2, 3, 4, and 5 provide an jlIla!ysis of debt servicing requirements for four <br />different scenarios. Tables 2 and 3 evaluate rate requirements for a 2.5 % growth rate <br />with and without revenue from Golden Technologies. Tables 4 and 5 evaluate rate <br />requirements for a 1.08 % growth rate with and without revenue from Golden <br />Technologies. Assumptions are iJlcluded as part of the tables. <br /> <br />Tables 2 and 4 show that the curr~nt rate structure is sufficient to cover all debt <br />servicing requirements other than that needed for the GO bonds. GO bonds are <br />expected to be retied through revenues created by tap sales in conjunction with cash <br />on hand in the water enterprise fu/ld [($829,000) (Johnstown 1996)]. <br /> <br />Tables 3 and 5 show that, in the event that the revenue stream from Golden <br />Technologies is lost immediately, a rate increase of 44 % will be needed to cover debt <br />servicing requirements. <br /> <br />Current rates for Johnstown customers and Golden Technologies (Johnstown 1996), <br />and projected rates if a 44 % increllSe is required, are as follows: <br /> <br />Rate Structure <br />Current <br /> <br />Town of JQhnstown <br /> <br />$18 per month for first <br />12,000 gallons <br /> <br />$0.85 for every thousand <br />gallons extra <br /> <br />Golden Technologies <br />$7,000 for first <br />8 million gallons..li: <br />rr .25"/ ~ 2 <br />$0.85 for every / ' <br />thousand gallons extra <br /> <br />Current plus 44% <br /> <br />$26 per month for first <br />12,000 Gallons <br /> <br />No Revenue <br /> <br />$ I. 22 for every thousand <br />gallons extra <br /> <br />#.....?i~? <br /> <br />-- <br /> <br />11 <br />