Resolution No. 4875 - Laserfiche WebLink

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Appendix' E shows the calculation of 1a)e GO bond credit. Future Payments The ,methodology considers'whether growth will provide a net contribution through wastewater user fee rates to the cost of capital improvements that benefit existing , customers. If such a contribution is indicated, a credit is provided. The credit is based on a present-worth analysis, structured as follows: 1. Annual capital costs (adjusted for inflation) associated with I existing customers' share of the project list costs (net of rehabilitation costs) are estimated based on the recommended phasing schedule. 2. The aImual capital expenditures are reduced by revenues from reserves and reimbursement fees to estimate required debt funding' 3. Debt services costs are estimated for repayment of borrowed funds 4. Future billing units (average flow and pounds of BOD and TSS) are estimated for the planning period based on system planning criteria ~ . 5. The annual user rate supported debt service per billing unit is determined for the life of . the debt. 6. The present value of the future stream of rate payments is determined for each year of the planning period. A credit amount per unit of capacity is determined based on the year of development and the projected length of future payments. At the time of adoption of the project list upon which SDCs are to be based, or any periodic modification to such list, an estimate of project financing costs will be made, based upon the assumed timing of projects and other available funding sources. The proportion of this debt financing to be funded by user rates attributable to users estimated to connect in each year is calculated, and the net present value for each year of the planning period of this series of cash flows is applied as a credit against the improvement SDC generated by the methodology . of;