Laserfiche WebLink
<br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />project. This would require the financing of about $240,000. The <br />most likely financing scenario is a loan from the Authority. The <br />current rate for a tax-exempt revenue bond with a maturity of 15 <br />years is 9 percent. Based on a 9 percent interest rate and a 15 <br />year maturity, the annual debt service would be $29,600. In <br />addition to the debt service, an operation, maintenance, and <br />replacement cost of $3,000 and a falling water charge of $750 have <br />been included. The total annual cost would be $33,350. <br /> <br />The annual revenues and expenses are estimated to be $25,600 <br /> <br />and $33,350, respectively. The District is currently collecting <br /> <br />$12,500 annually for the gate repairs, which could be used to fund <br /> <br /> <br />the difference between the revenue and expenses. New assessments <br /> <br /> <br />would not be required. The revenues from sales are expected to <br /> <br /> <br />increase as power rates increase during the debt service period, <br /> <br />and thereby reducing the District's annual contribution to the <br /> <br /> <br />debt service cost. <br /> <br />Power sales are expected to produce sufficient revenues to <br />repay the power plant costs and subsidize the gate repairs. If <br />the District just repaired the gates, the annual debt service <br />would be about $8,000. The power plant would not increase the <br />District's annual repayment obligation, but it will reduce the <br />obligation during the debt service period. After the debt is <br />retired, the District will realize a substantial cash flow from <br />power sales. <br /> <br />The project is economically and technically feasible, based <br />upon current criteria, and should proceed to construction. The <br />first step of construction is to begin final designs and specifi- <br />cations; however, before that can begin a FERC License must be <br />issued and financing must be secured. The FERC License applica- <br />tion was submitted in early December of 1985 and will probably be <br />issued about one year later. It is recommended that the Authority <br />and the District proceed with the necessary agreements to secure <br />financing so that final designs can begin about January of 1987 <br />followed by initiation of construction in August of 1987. <br />3 <br />