C153773 Feasibility Study - Laserfiche WebLink

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I I I I I I I I I I I I I I I I I I I SECTION III FINANCIAL FEASIBILITY GENERAL It is proposed to finance the new capital improvement program with cash contributions from the Morrison water enterprise fund (minimum of 25% of project costs) and a 3D-year loan from the Colorado Water Conservation Board. Therefore, CWCB requires a demonstration of financial feasibility, i.e., Morrison's ability to repay the loan, In reality, Morrison will probably experience significant new development within the next 30-year period, Such growth would require additional capital investment. According to the Master Plan, future improvements needed to support development within the Morrison service area include: . Activation of Cooley Reservoir, with . Raw water pump station and pipeline to/from Cooley, . Water Treatment plant expansion, . Extension of finished water transmission lines. On the other hand, growth (and the resulting system development fee income) is not assured. To be conservative, for this Report, we have assumed minimal growth, Le" one new EQR (equivalent residential unit) tap per year. Premises resulting from this assumption are: a, The existing customers (plus minimal growth), as a worst-case scenario, must be able to operate and maintain the water system, and payoff the new loan within 30 years; and b, Further expansion of the water system will be dependent on new growth - and the feasibility of financing further capital improvements is to be based on income from that growth, Table III-A is a cash basis projection, which essentially covers the next 30 years, Note that only one pro-forma year is shown since, with no growth, all years will be similar except for inflation considerations, Future rate/income adjustments will be necessary for the operating and systems improvement budget components in order to account for reduction in dollar value experienced, 70-OSO.039P:REPORT