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<br />I <br />'I <br />!I <br />J <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 />-38- <br />CHAPTER VII - FINANCIAL PROGRAM <br /> <br />Table 4 presents the financial program and payment schedule for the pro- <br />posed project. The table puts the proposed project repayment schedules into <br />the context of projected O&M costs, other scheduled financial obligations to <br />be met from the Town's Water Fund, and the revenues required to meet the com- <br />bined payments. <br /> <br />To increase the understandability of the table, revenues from interest <br />and property taxes have been assumed to remain constant, while all variations <br />in revenue requirements from year to year are reflected in the Service Charges <br />column. The Town may adopt a different plan for providing the necessary <br />revenues. <br /> <br />O&M costs, based upon 1985 actual costs, are also assumed to remain <br />constant. <br /> <br />The Emergency Operating Fund is provided for, pursuant to CWCS <br />guidelines. <br /> <br />The existing debt service schedules for two series of general obligation <br />water bonds, issued in 1976 and 1985, are shown in Table 4. <br /> <br />The estimated debt service schedule for a proposed $285,000 general obli- <br />gation water bond issue is also shown in Table 4. It is assumed that this <br />bond issue would be completed by June 1, 1987, so that the matching funds <br />would be available at the time the CWCS is asked to appropriate the balance of <br />the total project costs. Of the $285,000 proceeds from the bond issue, <br />$20,000 would be applied immediately to meet the expenses of the bond issue, <br />and an additional $32,500 would be applied during 1987 to match an equal <br />amount of funds from the CWCS for project final design. The balance of <br />$232,500 from the bond issue would be put into a 12-month certificate of depo- <br />sit at an assumed interest rate of 6 percent until the principal amount was <br />needed to pay for construction costs during the summer of 1988. <br /> <br />Table 4 shows the payment of six months of interest on"the outstanding <br />bonds during 1987 and a full 12 months of interest during 1988. In addition, <br />Table 4 shows how the total interest of $15,448, earned at 6 percent over a <br />36-month period, would be applied during 1989 and 1990, the two years with the <br />highest total annual payments. The interest earnings were estimated as <br />follows: <br />