DREAMS LANDING SEWER CONVERSION PROJECT

Comparative Cost Summary

Preliminary Information

Estimated Cost of Sewer Project: Total: $1.2 million, appx.

County share: $459,000

Dreams Landing (DL) share: $748,000 financed at 5.83% over 30 years (2.77% rate possible)

+ $3,000/unit one time charge [equivalent dwelling unit (edu) capacity purchase price], county financing available.

+Sewage flow charge of $3.52/1000 gls + 10% emvironmental impact charge Sewage flow charges rise estimated average 0.5%/year.

2005 DL Sewage Budget: $46,000/yr ($36,000 contract, $4,000 supplies, $6,000 maintenance)

Cost Analysis, Public Sewer:

Construction and Operation (gross charges):

$748,000 @5.83%, 30 years = $53,357/yr (fixed) $53,357

$748,000 @2.77%, 30 years = 37,037/yr (fixed)

Difference = 16,320/yr

Operation: sewage flow charges (estimate based on actual 777,000 gallons/year

from 10/1/03 to 9/30/04 + 20% overage allowance): = 3,600

Total gross annual public sewer costs, first year = $56,957

Cost reductions w/ public sewer:

Budgeted expenditures (2005) $46,000/yr

Reserve contributions reduction w/ removal of

sewage plant & tennis court (2004 Study)

(67,898 - 51,357) 16,541/yr

Total Cost Reductions -62,541

New $ required (savings) for public sewer w/o loan reduction, first year $(5,584) #

Loan reduction w/ 2.77% rate -16,320

New $ required (savings) for public sewer with loan reduction, first year $(21,904) #

# plus $3,000/unit one-time charge (prorated = $100/yr for 30 years)

Additional Cost (Savings) per Typical Unit (1.79%)

@ 5.83% = ( 5,584 x .0179) = 100 savings

-100 (prorated portion of $3,000) = 0 new $ in first year

@ 2.77% = (21,904 x .0179) = 392 savings

-100 (prorated portion of $3,000) = $292 savings in first year

10/26/04