(A) The wastewater system improvements will be funded (in whole or in part) by a loan from the SRF at an anticipated 1% interest rate and a 20-year payback period. An administrative fee of .2% of the unpaid loan balance is required.
Proposed loan | $618,137 |
Interest | 1% |
Annual debt service (20 years @ 2.3% | $34,177 |
Administrative fee (.002 of loan amount) | $1,236 |
Existing annual bond debt | $69,557 |
Required total annual revenue | $379,927 |
(B) The debt service is considered a fixed cost, independent of the amount of wastewater treated. The debt service for the SRF may need to be adjusted when a final amortization schedule has been prepared.
Annual sewer cost = $379,927 = 65.3% = 75.1%
Water revenues = $582,577 .87%
% of sewer users to water rates =
75.1% X water rates = sewer rates
Water | Sewer | ||
Minimum rate for first 1,500 gallons | 14.12 (75.1) | 10.61 | |
Next | 3,500 gallons | 5.20 | 3.90 |
Next | 10,000 gallons | 4.16 | 3.12 |
Next | 10,000 gallons | 3.47 | 2.60 |
Next | 25,000 gallons | 2.78 | 2.09 |
OM&R Rate | Debt Service | Total Rate | Minimum Bill | |
0 - 1,500 gal. | 7.71 | 2.90 | 10.61 | 10.61 |