See if you can follow my math:
Funds needed $115,000,000
Interest (30 yrs, 5.25%) $153,000,000
Closing costs (est) $ 4,740,000
Total needed $272,740,000
_________________________________________________
The Dec 2003 study on the Replacement of the Main Street Plant estimates ECUA will have about 84,000 sewer customer by 2020 – 2% increase per year. So I’ll go with those numbers and then reduce the increase to half a percent for the remaining years of the loan.
Total new sewer customers over the 30-yr life of the loan – 25,086
Income generated:
Tap fees to hook-up: $3500 increase per tap $87,801,000
Commerical customers: pay $20/month more, 3% increase per year: $127,634,954
Residential: pay $1.40/month more, 3% increase per year: $57,359,394
Total raised: $272,795,348.
___________________________________________
Monthly Residential increases over first ten years:
2007 $1.40/2008 $1.45/2009 $1.49/2010 $1.53/ 2011 $1.58/ 2012 $1.63/ 2013 $1.68/ 2014 $1.73/ 2015 $1.78/ 2016 $1.83
__________________________________________
What’s the big deal???
