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I I I I I I I I I 'I I I I I I I I I I CHAPTER VI PROJECT EVALUATION The purpose of this chapter is to determine Kelton Heights Water District's "abil ity to pay" referred to as the payment capacity. The payment capacity is established on the basis of Kelton Heights Water District's income. Presently Kelton Heights Water District has two sources of income, water sales and mil-levee taxes. In past years the mil-levee charged was determined by the amount of taxes needed to balance the financial budget. The maximum mil-levee assessable is 1.07 percent or 10.7 mils. The assessed evaluation of Kelton Heights Water District is determined yearly by the Jefferson County Assessor. The 1979 assessed value is $1,753,350 and past values have shown an average incfease of 3% annually. Future income from taxes are based upon an avefage increase in the assessed value of 3% annually and a maximum assessable mil-levee of 1.07%. The amount of taxes recei ved and mil-l evee charged are shown in the payout sche- dule tables in Chapter VII. Kelton Heights Water District's present water rates are $6.50 minimum charge up to 4,000 gallons usage and $.96 per 1000 gallons thereafter. The District is charged a rate of $.676 per 1000 gallons by DWD for water. A net water rate is used to represent Kelton Heights Water District's income from water saleS. The net water rate is the dif- ference between Kelton Heights Water District's water rates and the rates Kelton Heights Water District is charged by DWD. The net water rate charged by the District is $3.8 minimum charge up to 4,000 gallons and $.28 per 1,000 gallons after. Water use is assumed to remain constant through the life of the project. The average net income from net water sales has been $10,500 for the past three years. The amount of income received from net water sales is shown in the payout schedule tables shown in Chapter VII. 28