Laserfiche WebLink
<br />. <br /> <br />. <br /> <br />, <br />, <br /> <br />On June 17 of this year, the City held an election on the completion of the project. As <br />reported to us by the City Staff, the vote was 69 percent in favor of the project with a <br />voter response of about 60 percent. <br /> <br />. <br /> <br />Discussion <br />The City is pursuing both short-term and 10l\g-term financing for the project at the present <br />time. Table 2 is a summary of the City's 10l\g-term financial plan which would include <br />borrowing from the CWCB and the Water ~ Power Authority as well as a loan and grant <br />from Rural Development. The City would Iilce to pursue $4.0 million in funding from the <br />Board in 1998 and in 1999 for a total of$8.0 million. <br /> <br />Table 2. Proposed Lonll-Term Funding Scenario <br /> <br />Year Source and Type Amount <br /> $ Million <br />1997 Rural Develooment - Gr.ant $3.2 <br />1997 Rural Development -Loan $4.8(40 vrs, 4.5%) <br />1997 CWRPDA - Loan $15.0 (20 vrs, 4.5%) <br />1998 CWCB -Loan $4.0 (30 vrs) <br />1999 CWCB -Loan $4.000 vrs) <br /> <br />The proposed funding from the CWCB w041d be used for the construction of the raw <br />water pipeline and the raw water reservoir. The total cost of raw water facilities for the <br />entire project is estimated at $23 million. With the $5.5 million existing loan and a <br />potential $8.0 million in new financing from the CWCB, the Board's investment in the <br />project would amount to $13.5 million or a.pproximately 58 percent of the cost of the raw <br />water facilities. <br /> <br />e <br /> <br />Short-term financing is being pursued by the;: City in conjunction with George K. Baum & <br />Company of Denver. The plan involves intl:rim financing using variable rate revenue <br />bonds which are intended to be retired eventually by the long-term sources suggested in <br />Table 2. The variable rate revenue bonds would have a weekly floating interest rate and <br />can be repaid at any time, in part or in full, without penalty. The bonds would be secured <br />by water system revenues and backed by a letter of credit from a commercial banle <br /> <br />In June ofthis year, the City staff submitted to us a revised 40-year projection of <br />expenditures and revenue requirements for implementation of the financial plan outlined in <br />Table 2. That projection indicates that the average montWy water bill may increase to <br />about $53 per month over the next several years (from the current level of about $22 per <br />month). <br /> <br />e <br /> <br />2 <br />