|
|
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).