FINANCIAL PLANNING FOR MILLSBORO

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FINANCIAL PLANNINGFOR MILLSBOROS FUTURE
July 18, 2007 Public Hearing
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Millsboro Water Supply

• PROBLEM
• Trichloroethylene contamination
• Carbon Filters Installed COSTLY!
• SOLUTION
• Replace Wells Nos. 1 and 2

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Millsboro Wastewater

• Required to get out of Indian River (TMDL)
• Excess nutrients cause algal blooms and fish kills

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Millsboros Future

• Livable Delaware
• Sustainable Growth

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Proposed Projects and Financing Plan

• The Proposed Projects
• The Financing Plan
• Means of Debt Repayment
• Comments, Questions

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Water System Project

• Replace Well Nos. 1 and 2 in Columbia Aquifer
• Install New Wells in Manokin Aquifer
• New Treatment Plant
• 2.16 MGD - Capacity to 2023
• 1.9 Million Cost

ColumbiaAquifer
ManokinAquifer
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Wastewater System Project

• Treatment Plant Improvements
• High quality effluent
• 1.15 MGD Capacity to 2014
• Expansion Capability
• Land Disposal of Effluent
• Purchase 500 acres
• Pipeline to Site
• Holding Pond
• Spray Irrigation
• Stop Indian River Discharge
• 40.35 Million Project Cost

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Current Financial Status

• Funds Presently Allocated
• 8 million in loans approved 2004 referendum
• Allocated to wastewater plant
• 5 million in fees collected from development
• Allocated to wastewater plant
• Unfunded Project Costs
• 1.66 million for wells and water treatment
• 31.50 million for wastewater treatment
  disposal
• Potential Grant Funds - 6.53 million??
• 36 MILLION NEEDED!

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Financing Plan

• 9.6 Million 20-year, low-interest SRF Loans
• 25.0 Million 40-year, low-interest USDA Loans
• 6.5 Million Potential Grant Funds
• Debt distributed between users and developers

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Development Fees

• Sewer Impact Fee
• Current Fee 2,000 per EDU
• Expected New Fee 4,500 per EDU
• Annexation Fee (water/wastewater)
• Current Fee 4,400 per acre
• Expected New Fee 7,500 per acre

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User Fees
Average Daily Usage Current Quarterly Sewer/Water Bill (0.70/100 gal.) New Quarterly Sewer/Water Bill (0.90/100 gal.) Increase per Quarter (0.20/100 gal.)
150 gal. 94.50 121.50 27.00
200 gal. 126.00 162.00 36.00
250 gal. 157.50 202.50 45.00
300 gal. 189.00 243.00 54.00
350 gal. 220.50 283.50 63.00
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Referendum

• Vote YES to approve borrowing up to 36 million
• Must comply with State regulation to get out of
  River
• Necessary to maintaining a safe drinking water
  supply
• Necessary for sustaining Millsboros pristine
  environment
• Time August 25, 2007 100-700 p.m.
• Location Town Hall

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QUESTIONS - COMMENTS
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FINANCIAL PLANNINGFOR MILLSBOROS FUTURE
July 18, 2007 Public Hearing