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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D. Repayment Capability

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Presented in Table-II is the Payout Schedule for both the Rehabilitation
and Enlargement alternatives. The revenues and expenses were presented in
Tables 9 and 10 and summarized in Table-II. The loan amortization portion of
the table is comprised of a CWCB advance for 40 years at 5%, plus a 10% of the
annual payment for the first 10 years for the Emergency Operation Fund. To
finance the remaining 50% of the project, it is assumed that 20 year revenue
bonds will be issued (see Section VII-C-4). The annual and accumulated sur-
plus or deficit for each alternative are presented in the last columms of the
Table-II.

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For tee Rehabilitation alternative there is an accumulated deficit for the

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years 1983, 1984, and 1985 in the amount of $133,500, $103,600, and $58,000,
respectively. This deficit is due to the initial costs exceeding the CWCB
advance and bond issue funds prior to receiving any i~come from the newly issued
taps. As the number of taps issued increases, an accumluated surplus results
beginning in 1986 ($3,400) through 2024 ($15,237,300).

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For the Enlargement alternative, there is an accumulated deficit for the

years 1983 and 1984 in the amount of $201,800 and $63,900, respectively. This

deficit is also due to the initial costs exceeding the CWCB advance and bond

issue funds prior to receiving any income from the newly issued taps. However,

an accumulated surplus starts in 1985 ($106,500) and increases to $35,820,500.

in 2024 which is considerably larger than the Rehabilitation alternative.

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E. Benefit/Cost Comparison

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In addition to the comparison of annual revenues and expenses of Section
VII-D, a benefit/cost comparison has been made. The analysis consisted of
distributing the costs (those items of Table-9 plus loan ammortization) and
the revenues (Table-IO) and then computing the present worth of the various
components using an interest rate of 5%. A sample plotting for the Enlargement

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