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• Apply for a low interest(4%), 10 year loan from the State Revolving Loan and Grant Fund. <br /> Include all or a portion of the loan payments in the sewer rate base over the 10 yr. period. <br /> Potential Options for Funding Shortfall <br /> • Seek additional funding through Community Development Block Grants and/or Rural <br /> Communities Assistance Program <br /> • Separate Central Efland project into base or core and add alternate components, then solicit <br /> bids on that basis. <br /> • This strategy does give rise to the possibility that some bidders will manipulate the bid <br /> process, in that bids are awarded on the basis of the low bid for the base or core system. <br /> • The portion of the project scope that is designated as the core or base system and submitted <br /> and approved as such by the various review agencies must be built in its entirety. <br /> Interlocal Agreements <br /> • Northern Buckhorn <br /> — Wastewater flows to Mebane — Industrial Drive Pumping Station <br /> — Existing Interlocal Agreement with Mebane covers both the existing southern Buckhorn <br /> sewer line as well as the proposed northern Buckhorn sewer section. <br /> — New customers in this area will be City of Mebane customers <br /> • Central Efland <br /> — Wastewater flows to Hillsborough <br /> — Agreement in place due to existing Efland Sewer system. <br /> — New Customers will be Efland Sewer customers (Orange County) <br /> Project effect on typical customer <br /> • Northern Buckhorn <br /> — This portion of the project will be paid entirely with STAG (grant) funding. <br /> — The project cost will have no impact on new customers. <br /> —A household producing 5000 gallons of wastewater per month will be billed $24.50 (City of <br /> Mebane standard in-town rates of$4.90 per 1000 gallons). <br /> Project effect on typical customer <br /> • Central Efland <br /> — For full project buildout, the projected budget is approximately $3.67 million ($1.7 million <br /> budget shortfall). <br /> — One option for funding this shortfall is by a low interest government loan (State Revolving <br /> Loan and Grant Program, with a 10 year term at 4% interest) <br /> — If the debt service for this loan was added to the sewer rates, the projected monthly cost <br /> for this portion of the rate base alone would be $55 per month for a customer using 5000 <br /> gallons of wastewater per month. <br /> Project effect on typical customer <br /> • Central Efland <br />