8/17/1993 - Laserfiche WebLink

Home Browse Search

AUG 17 1993BOOK 9 ® FAGE�� Water Total Plant in Service Less Accumulated Depreciation Net Water Utility Plant in Service $3,059,908 811.778 S2.248.130 sUMMM schedule of Water and surer Plant in Service Item Water Sewer Total Total Plant In Service $3, 059, 908 $5, 930, 362 $8p990,270 Accumulated Depreciation $ 811,778 $2,137,925 $2,949,703 Net Utility Plant $2, 248,130 $3,792l437 I$6,O4Of567 As a result of this Offer of Sale, the County has been negotiating the purchase of the GDU water and wastewater utility system. The negotiated price is $3.000.000, plus closing costs of approximately $25.000. As a result of the Offer of Sale and changes in the County rates from 1990 to 1993, and possible changes in the GDU utility plant status, the Department requested CH2M Hill to update the 1990 Evaluation Report. The CH2M Hill updated report (copy attached) indicates a supportable 30 -year levelized debt service of $8,030,000 under the existing County rates. Acquisition costs are to be financed from recent bond proceeds, with debt service to be paid from revenues collected from the users of the system. The Department proposes to retain the current GDU line extension charges of $6.51 per front foot for water and $15.77 per front foot for sewer lines installed and available for service. This is to assist in the reasonable recovery of the costs associated with the purchase of the water and sewer lines currently installed and available for service. The revenue to be generated from these charges are used in the revenue projections of the system. The debt service for the acquisition cost is supported with revenues generated from the existing GDU customer base with current County uniform rates. The current County rates are approximately 19% higher than the current GDU rates, but the current County rate is 78.96% lower than the GDU proposed rates for a customer using 5,000 gallons per month. 30