4. Project Cost
Interest
Rate
Term in
Years
Annual
Payment
Outfall* $25,000,000 2% 25 $1,275,637
Plant* $15,000,000 2% 20 $913,668
Bio-solids** $12,500,000 2% 25 $637,818
Total $52,500,000 $2,827,123
*This funding has been approved by DNREC through the Clean Water State
Revolving Fund.
**Application will be made to the Clean Water State Revolving Fund in
August of 2015. If approved this year the interest rate will be 2%.
5. Total Cost Rehoboth’s Share
Annual O&M Cost $1,888,000 $1,184,000*
Outfall Additional O&M $150,000 $82,500**
Bio-solids Operational Savings ($210,000) ($115,500)**
Annual Loan Payments $2,827,123 $1,554,918**
Total $4,655,123 $2,705,918
*This amount comes from the Excel spreadsheet found on the following slide
which is derived from the 2015-2016 budget.
**These amounts are 40% of totals.
7. Without Existing
Surcharge
With Existing
Surcharge
Rehoboth Share of Annual Cost $2,705,918 $2,705,918
Current Revenue from Service Fees $1,160,000 $1,740,000
Additional Needed Revenue $1,545,918 $965,918
Percent Increase in Needed Revenue 133.3% 55.5%
Existing Average User Rate $325.00 $487.50
Proposed Annual User Rate $760.00 $760.00
8. There really is no such thing as an average or
typical user.
In 2009 a year’s worth of usage was analyzed for
all 1 inch and smaller meters in the City.
This data revealed that on average these
customers used 150 gallons per day on a year
round basis.
This equates to an annual bill of $325.
***Base sewer rates have not been increased
since 2006.
9.
10.
11.
12. Recently bio-solids handling was added to the
project at an estimated cost of $12,500,000.
Total estimated project costs have risen from
$34,600,000 to $52,500,000 since 2009, largely
because of the addition of bio-solids handling,
but also the effects of inflation.
The estimated average user rate during this
same time period has risen from $680 to $760.
This increase takes into account the new scope
of the project (addition of bio-solids handling)
and 6 years of cost inflation (operational and
capital).