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I I I I I I I I I I I I I I I I I I I CHAPTER 7 FINANCIAL PROGRAM Costs Total project costs for construction, contingency, and engineering was determined in Chapter 6 to be $520,100 for the chosen alternative. In addition to this cost, the City of Victor has incurred additional prior costs associated with the funding of this feasibility study. The City share of the feasibility study cost is $22,500, bringing the total project cost to $542,600. According to City sources, the only feasible financing alternative available to the City is to offset the majority of the project costs with grant money. A breakdown of the proposed financing plan for the City is as follows: $ 12,600.00 240,000.00 260,000.00 30,000.00 $542,600.00 City Share Colorado Impact Grant Assistance Fund Community Development Block Grant Colorado Water Conservation Loan Total It is proposed that the City share of the project come from available up-front money, and that the payback for the CWCB loan be made from increased revenue from existing and new water users. Current City water sales rates are $2.25/1000 gallons in-city service and $2.81/1000 gallons for outside city services. These costs compare favorably with the surrounding areas such as: Woodland Park at $2.81/1000 gallons and Colorado Springs at $1.31/1000 gallons. Table 7.1 shows a Financial Program and Payout Schedule for the proposed project. Note on this table that the required annual M&I revenue is the additional revenue above tha tal ready coll ec ted tha t will be necessa ry to pay back the CWCB loa n. Based on the City's most recent balance sheet (Appendix B) the actual operating revenue for water sales for the year ending December 31,1985, was $117,500. Thus the projected increase in annual M&I revenue required from Table 7.1 repre- sents an increase of approximately 3 percent. 44