3/30/1993 - Laserfiche WebLink

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COSTS Table ES.30 Projected Capital Expenditures 2010 BOOK 89 Pb,,E � 10 Project Description Estimated Capital Cost* WATER PROJECTS Transmission line project #25 Transmission line project #28 Transmission line project #29 $3,699,000 837,000 915,000 TOTAL CAPITAL COST - WATER PROJECTS $5,451,000 TOTAL ESTIMATED CAPITAL COST $5,451,000 TOTAL CAPITAL COST - WATER PROJECTS 1993-2010 $66,002,000 TOTAL CAPITAL COST - WASTEWATER PROJECTS 1993-2010 $86,650,000 TOTAL ESTIMATED CAPITAL COST 1993-2010 $152,652,000 * all costs in 1993 dollars Concluding the formal presentation, Mr. Fuller asked if there were any questions. Chairman Bird felt the major question would be to ask how the consultants make their projections accurate enough to have the cash flow that we are going to need from impact fees to pay for all the improvements; and to further ask how confident they feel in the formula they are using and how much new growth will it take to support that formula. Director Pinto explained that the impact fee is figured on present dollars. When a system is built, the trigger mechanism is demand which means an impact fee. If the system is not built prior to the demand, we don't get ahead of the impact fee structure. What we really are saying is that we are not going to build unless there is a demand and if there is a demand, someone is going to have to pay the impact fee. If we choose to build in larger increments prior to the actual demand, but based on projections, we would be okay as long as the projections were totally accurate. If they become inaccurate, our existing customer base can become burdened with expansion that is unused. In a public system, you cannot go to the profits of the company to pay for expansion; therefore, only the existing customers would pay. Taking Grand 10 --