PROJ00504

• Contract/PO #: C153334
• Contractor Name: Henry Waneka Mutual Reservoir Company c/o City of
• Contract Type: Loan
• Water District: 6
• County: Boulder
• Bill Number: FSA
• Loan Projects - Doc Type: Feasibility Study

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2 - Service Charge

The water utility service charges currently used by the City are

presented in Table-I. Using the same occupancy rates and demands, the

average monthly usage is about 13,500 gallons, and the charge would

be about $25 monthly or $300 annually per dwelling or tap. This rate

is also assumed to increase at the rate of 8% annually, every fourth

year.

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3 - Stock Assessments

There are currently 714 shares of stock in the HWMRC that can be

assessed for improvements and operating costs for the dam (see C~1apter

II). Previous assessments (1979) have been on the order of $1.50 per

share or $1,071/year. For the purpose of this analysis, the rate of

$1,110 per year with an increase of $9 per year every fourth year has

been used.

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4 - Project Funding

The project is to be funded through the CWCB construction fund

advance and through a revenue bond issued by the City of Lafayette. The

CWCB advance will be in the amount of 50% of the total project cost,

amortized for 40 years with a 5% service charge. In addition, an

Emergency Operating Fund in the amount of 10% of the annual payment

will be required for a 10-year period, which is reserved for emergency

operations (see also discussion in Chapter-VI).

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To finance the remaining 50% of the project, it is assumed that

the City of Lafayette will issue revenue bonds for a 20 year period

with an average interest rate of 10%. The issue will include a 7%

discount rate for issuing the bonds. The amortization schedule for

both funding sources is shown in the Payout Schedule, Table-II

(page 51).

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