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