HomeMy WebLinkAbout9 Donner lake Water system Agenda Item # 9
Public: Utility District
WORKSHOP
To: Board of Directors
From: Mary Chapman
Date: August 20, 2008
Subject: Review of Donner Lake Water System Improvements Financial
Status
1. WHY THIS MATTER IS BEFORE THE BOARD
This workshop item is to provide the Board with an update of the status of the Donner
Lake water system acquisition and replacement project costs.
2. HISTORY
In 2001, the District acquired the Donner Lake water system from the Donner Lake
Water Company through a condemnation process. Almost immediately the District
began to replace most of the existing water system. Funds to rebuild the water
system came first from a bridge loan and later from a State of California State
Revolving Fund (SRF) loan. Additional funding to complete the project came from
loan proceeds from the 2006 Certificates of Participation (COP) issued in October,
2006. The Donner Lake property owners voted to form an assessment district to pay
for the water system. Additional project costs have been financed through a $6.65
surcharge on customer monthly water bills.
3. NEW INFORMATION
Attached is a recap of the financial transactions related to the rebuild of the Donner
Lake water system.
The SRF loan will be paid off on 2025. The 2006 COP loan be paid off in 2036. The
customer surcharge will continue until the Donner Lake portion of the 2006 COP loan
is paid off.
4. FISCAL IMPACT
There is no fiscal impact created by this agenda item.
5. RECOMMENDATION
Review this item and provide comment.
Mary Cha an Michael D. Holley
Administrative Services Manager General Manager
DONNER LAKE ACQUISITION AND REPLACEMENT PROJECT COSTS: 6/30/08
SOURCE OF FUNDS:
Loan proceeds:
State Revolving Fund loan $12,732,965
Donner Lake portion of the 2006 COPs 1,479,272
Land Sale 412,156
Assessment payments received 6,965,264
Interest earnings 513,302
Total Source of Funds $22,102,959
USE OF FUNDS:
Capital project costs $14,729,550
Donner Lake water system purchase 1,316,101
Bridge loan financing fees and interest 754,428
Principal and interest payments 2,504,583
Assessment district formation, annexation and administration costs 146,408
Short&long term investments 2,651,890
Total Use of Funds $22,102,959
DEBT STATUS:
State Revolving Fund Loan $11,445,947
Donner Lake portion of the 2006 COPs 1,360,042
Total Debt Outstanding $12,805,989