Agenda - 10-07-1991 - Laserfiche WebLink

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FINANCING CONSTRUCTION COSTS THROUGH THE SEWER RATE STRUCTURE The major part of financing for the existing Efland sewer system was through grant funding provided by the Farmer's Home Administration and by state Clean Water Fund monies administered by the NC Division of Environmental Management. Unfortunately, both of these sources of grant funds have not been available in the last several years and are not likely to be available in the foreseeable future. Available sources of funding for the majority of the construction costs outlined above include the County -wide tax base, the Efland area tax base or the customers of the existing and expanded sewer system. The table below shows the total costs of constructing and operating the Efland sewer system on a phase by phase basis if and when the system is expanded. There are a number of assumptions used in obtaining the numbers shown in this table. These assumptions are used to calculate treatment and administrative costs which will vary according to the number of households served and the waste generated by each household. For example, it is assumed that sewer flow per customer, both existing and new, approximates normal domestic sewer flow for a three person household or about 300 gallons per day. This assumption has not held true in the area served by the existing system. because there are many single user customers. The numbers used below do not account for any increased flow which might be anticipated from the commercial sites in central Efland. The water usage records for these sites show that sewer flow from all of these facilities would not sufficient to cause a major skew in cost assumptions used. 'Another assumption is that the existing debt on the existing sewer system has not been accumulating unpaid interest on the unpaid balance. On a private sector financial transaction the accumulated interest would actually amount to an additional $50,000. in accrued interest, which would be added onto the initial deb., of $23.6,000. The assumptions dealing with the number of customers which would be served by each phase are based on a percentage of the number of property parcels which could be served in each phase. Sixty additional customers are assumed to come on line if the remainder of Phase I is constructed, an. additional 35 customers for Phase II, an additional 45 for Phase III. an additional 30 for Phase IV and an additional 12 customers for Phase V. The cumulative customer base for all phases, including the existing system, is assumed to be 312 customers. Other assumptions are listed above the table.