PROJ00367

• Contract/PO #: C153361
• Contractor Name: Kelton Heights Water & Sanitation District
• Contract Type: Loan
• Water District: 8
• County: Jefferson
• Bill Number: SB 80-67
• Loan Projects - Doc Type: Feasibility Study

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CHAPTER VII

FINANCIAL PROGRAM

The financial programs established in this chapter are based on a 1980
project cost of $453,000, a 40 year pay back period, 100 percent state
financial assistance, and administrative charges of 2%, 3% and 4%.
Kelton Heights Water District appl ied for and was refused funding
through the Economic Development Admi ni strat ion and other sources of
financial assistance have been exhausted. Thus 100% state financial
assistance is required.

The Payout Schedules show a balance between income and expenditures
over the 40 year payback period. The water rates used in the payout
schedules represent the water rate increase needed to balance the
payments over the 40 year period based on the administrative charge
and the assessed mil-levee.

Payout Schedule 1

Payout Schedule 1 uses an administrative charge of 2% and an
assessment of 9.2 mils. An assessment of 9.2 mils is an increase of
1.2 mils over the mil-levee assessment in 1978 of 8.0 mils. An
increase in water rates to $9.37 minimum charge up to 4000 gallons and
$.96 per 1000 gallons thereafter is needed to balance expenditures.
This results in a net water rate of $6.67 minimum up to 4000 gallons
and $.28 per thousand gallons thereafter and is equivalent to a yearly
increase of approximately $35.00 per tap. This increase in water
rates results in a net water sales of $18,362 per year. Payout
Schedul e 1 is shown on Table 13.

Payout Schedule 2

Payout Schedule 2 uses an administrative charge of 3% and an
assessment of 9.51 mils. An assessment of 9.51 mils is an increase of
1.51 mils over the mil-levee assessment in 1978 of 8.0 mils. An
increase in water rates to $10.14 minimum charge up to 4000 gallons

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