HomeMy WebLinkAbout2013-1119 Document Submitted
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Clarification to the "Infrastructure Finance Authority (IFA) Water Fund Financing Alternatives" staff report
Councilor Marsh asked the following question regarding the staff report on IFA Water Fund Financing
Alternatives:
Hi Peter,
I have a question about the graph provided in your Water Fund Financing Alternatives document. It would
seem to me that the increase in costs per EDU under the IFA scenario would be cumulative i. e., an increase
of. 42 plus an increase of $1.93 plus an increase of $3.63. If that's the case, then the new monthly rate at the
end of all that would be $48.73. That's still significantly lower than the alternative, but more than currently
indicated.
If I'm understanding this correctly, perhaps it would be helpful to add a 6th line to the chart to show the
cumulative impact (debt, payments, etc.) of the three projects.
If I've got this upside down, please straighten me out.
Regards,
Pam
Councilor Marsh is correct; the IFA analysis table on page two of the staff report did not reflect the cumulative impact
of the three Safe Drinking Water Revolving Loan Fund (SDWRLF) project options. In order to clarify the cumulative
effects of the three projects, staff has revised both the table and graph showing the cumulative rate of $48.73, which is
equal to the current EDU of $42.75 plus $5.98 projected monthly new debt service per EDU.
Total Projected Projected
Annual Payments Monthly New Avg
Total Grant Loan Debt over Life of New DS Monthly Rate
Scenario Financing Amount Amount Payment Loan per EDU per EDU
1. LOCAP GO $20,746,000_ $0 $20,746,000 $1,513,040 $30,260,807 $12.59 $55.34
2. LOCAP rev $20,746,000 $0 $20,746,000 $1,537,360 $30,747,208 $12.80 $55.55
3 a. TAP line* $2,00_0,000 $700,000 _$1,300,000 $50,3_73 $1,511,176 $0.42 $43.17
3 b. Crowson II** $6,746,000 $750,000 $5,996,000 $232,334_ $6,970,011 $1.93 $44.68
3 c. WTP $12,000,000 $750,000 $11,250,000 $435,916 $13,077,488 $3.63 $46.38
a,b,& c combined: $20,746,000 $2,200,000 $18,546,000 $718,622 $21,558,675 $5.98 $48.73
L
IIFA SDW Disclaimer: Forgivable availability is based on the availability of funds based on the current IUP
Lol & Application time: 2014 Lol & Application time: 2015 Lol & Application time: 2016
EDU = equivalent dwelling unit Lol = letter of intent
Projected New Avg Monthly Rate per
EDU
■ Projected _
Monthly
$60 New DS
per EDU
$50
$40
$30
$20 Projected
Monthly
$10 OM&R+
Existing DS
$0 per EDU
1. LOCAP GO 2. LOCAP rev 3. SDWRLF
combined