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Sewer and Water Revenue (TOTAL) based on Assumptions: <br /> <br />Service Fee per Quarter Fee Per year <br /> <br />Sanitary Sewer (C/I) $ 45,287 $ 181,148 <br />Water (C/I) $ 24,205 $ 96,820 <br />Sanitary Sewer (TH) $ 84,930 $ 339,720 <br />Water (TH) $ 31,171 $ 124,684 <br /> <br />Yearly TOTAL $ 742,372 <br /> <br />City revenue from Property tax could counteract some of the cost incurred by <br />construction of City Sewer and Water services. It is estimated that the increase in the tax <br />revenue would be approximately $1,943,484 per year upon completion of the studied <br /> <br />areas. <br /> <br />Sanitary Sewer and Water Financing . <br /> <br />Utility usage rates, TIF revenues, special assessments or other funding sources could be <br />used to finance this project. For the purposes oft?tis study bonding is the primary method <br />we will use. The previous section estimated that amount of $742,372 generated by utility <br />usage fees would not be enough to pay offthe project cost of $6,386,700 in one year. The <br />logical method of financing would be to bond for the capital costs over a longer period of <br />rime. A finance consultant has provided the City with several debt service schedules that <br />illustrate 10, 15 and 20-year financing plans. (See Attachment regarding G.O. Bonds) <br /> <br />Of the three debt service schedules, the 15-year term initially appears to be the best <br />option. Capital costs and financing costs totaling 6.672 million could be paid for over a <br />15 year per/od with annual payments ran~ng from $657,600 to $669,681 a year. This <br />amount is less that the amount calculated by utility usage fees estimated by the westerly <br />extension of city services. <br /> <br />More than likely the Sanitary Sewer and Water Extension to the Western Border would <br />be funded by a combination of revenue sources. Sources may include TIF revenues, <br />special assessments, utility fees, and bonding that will provide funding and financing for <br />this project. Determining the combination of the right funding sources requires further <br />research and discussion and can be decided at a later date. <br /> <br />Su, mmary <br /> <br />City revenues will increase with new development spurred ,along the Highway 10 <br />corr/dor. The usage revenue alone could pay for the cost of construction of the Sanitary <br />Sewer and Water trunk lines in 10-15 year per/od. In addition to the 5 examples used in <br />this study, more development will occur increasing revenues. Many of the developers are <br />anxious to develop their properties along Highway 10 but they lack the City Sewer and <br />Water Services that would allow development to be cost effective <br /> <br />2O <br /> <br /> <br />