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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 />I <br />I <br />I <br />I <br />I <br /> <br />Financial Feasibility <br />It is anticipated that the Town can obtain an Economic <br /> <br />Development Administration grant for approximately 50 percent of this <br /> <br />project and a possible additional 30 percent grant from the 4-Corners <br /> <br /> <br />Regional Commission, and a loan from the State for $406,250.00. The <br /> <br /> <br />Town's present outstanding bonds are $153,000.00 with a payout cost <br /> <br /> <br />of $297,705.00, extending to the year 2009. The total grants could be <br /> <br /> <br />up to $967,500.00. The loan could be up to $406,250.00, at three <br /> <br /> <br />percent interest the annual principal and interest payment would <br /> <br />increase by $17,575.00 per year. <br /> <br />Based on 361 present tap equivalents and additional 90 tap <br /> <br />equivalents for the new rural pipeline, the increased principal and <br /> <br />interest could be paid by increasing the minimum charge to $9.50 per <br /> <br />month for town taps and $19.00 for rural taps. This would generate <br /> <br />$13,530.00. <br /> <br />Assuming <br /> <br />day for <br /> <br />a <br /> <br />water <br /> <br />use <br /> <br />increase <br /> <br />of <br /> <br />50,000 <br />$0.75 <br /> <br />gallons average <br /> <br />per 1,000 gallons <br /> <br />per <br /> <br />122 <br /> <br />days <br /> <br />of <br /> <br />the year <br /> <br />at <br /> <br />would provide an additional $4,575.00 needed to make a principal <br /> <br />and interest payment of $17,575.00 and provide a reserve of $530.00. <br /> <br />TI~l <br />