Options for funding the

Cold Spring Road water system

Municipal bond

20 years at 5%

Loan from state fund

20 years at 2%

Cost of repaying principal

$875,000      

$875,000

Interest payments

$553,000

$184,000

Total cost of loan

$1,428,000

$1,059,000

Cost of 20 years of water delivery

$420,000

$420,000

Total cost of new water system during the first 20 years

$1,848,000

$1,479,000

Projected income from new water fees from new water line

$979,000

$979,000

Total cost to Williamstown

$868,000

$500,000

 

Sources:

Figures on projected income from fees and cost of water delivery are from the Town of Williamstown’s document entitled “Operating Expense and Debt Repayment Analysis”

Schedules of loan repayment courtesy of Peter Fohlin.

 

 

 

 

 

 

Options for funding a tank to supply water for fire suppression

Municipal bond

20 years at 5%

Low-cost loan

20 years at 2%

Total cost of water tank

$1,000,000      

$1,000,000

Portion paid by state (projected)*

$500,000

$500,000

Amount to be paid by MGRHS

school district

$500,000

$500,000

Williamstown assessment

(2/3 of total)

$333,000

$333,000

Interest paid over 20 years

$175,000

$70,000

Total cost to Williamstown

$508,000

$403,000

 

* This analysis assumes that the tank to supply water for fire suppression would be built if and when MGRHS undertakes renovation and reconstruction and thus is in a position to install a sprinkler system.  The tank would then be included in the sum of the renovations or reconstruction, and such a project is highly  unlikely to proceed without state funding.  The projection further assumes that the state would fund 50% the school renovations or reconstruction (a lower rate of funding that the state has provided in the past).