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_� <br />7.0 FINANCIAL EVALUATION OF PREFERRED PLAN <br />7.1 INTRODUCTION <br />l <br />A preliminary financial evaluation of the preferred plan was prepared in <br />I order to provide an indication of the financia] viability of that plan. For <br />J the purpose of this study, a staged version of Alternative No. 5 which <br />� includes one storage reservoir on Tomichi Creek and all ten recreation <br />components was evaluated. This was done because certain sources of financing <br />I are only available for "small" projects, and Alternative No. 5 does not <br />qualify unless the scope of the project is reduced through phasing. <br />� 1.2 SOURCES OF FUNDING AND RESULTING ANNUAL COSTS <br />lA broad list of potential funding sources for implementation of <br />Alternative No. 5 was prepared and reviewed. After evaluating the list of <br />I potential sources, a financing strategy was developed which identified a <br />potential source of funds for each component included in the plan. Table 7.1 <br />, defines the financing strategy used for the analysis. <br />The required project funding is assumed to come from: USBR Small <br />IProjects Program Grant, State environmental mitigation grant (HB 1158), low <br />interest state and Federal loans, and the sale of revenue bonds. Therefore, <br />Ithe only funds included in the financing strategy which require up-front <br />financing costs and interest during construction is,the amount assumed to be <br />derived from the sale of revenue bonds, E2,851,000. When interest during <br />construction, debt service reserve funds and financing expenses are added to <br />the construction amount allocated to revenue bonds, the total amount of bonds <br />that are required is 33,635,000. <br />ITable 7.2 presents a breakdown of project funding by source along with <br />the annual debt service associated with repayment of each source. This table <br />� is based on preliminary discussions with key personnel at the potential <br />7-1 <br />