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Because of the lengthy review process, applications have been started for each of these <br /> permits. <br /> The following is a brief summary of the current status of LCOG's portion of the work for <br /> Coburg's wastewater. project... <br /> FINANCIAL <br /> Grant Funds -The construction costs of the wastewater system will be financed by a mix <br /> of grants and loans from state, and perhaps federal, sources. The exact mix of grants <br /> and loans is uncertain, and. is under review by state and federal agencies. Coburg <br /> elected leadership and staff have been working hard to increase the amount of grant <br /> <br /> funds a vailable. T he p ossible range of g rant f unds ranges f rom $ 500,000 t o .several <br /> millions. Projections of loan and loan repayments are being evaluated for a variety of <br /> grant scenarios. <br /> Comprehensive Financial Model -Construction loan repayments are planned to come <br /> from three sources: the Coburg Urban.. Renewal District (URD); a local improvement <br /> district (LID); and systems development charges (SDC). Projections of the overall cost <br /> of the project and the cost to individuals in Coburg, are estimates, based on the best <br /> information available at any particular time. <br /> The key to the financial analysis is to develop a model that makes reasonable <br /> projections based on cost estimates and other identifiable variables. The financial model <br /> uses conservative, but not worst case, assumptions, based on the idea that if the project <br /> can remain affordable under conservative estimates, then the actual outcome should be <br /> as good as or better than projected. The outputs of a refined financial model is expected <br /> to be available at the August work session. <br /> Urban Renewal District -The Coburg URD covers just under half of the highway <br /> commercial and industrial parts of Coburg. Refinement of the development assumptions <br /> and revenue projects is currently being completed. Over optimistic forecasts could result <br /> in future debt payment shortfalls falling on rate payers, while over conservative <br /> estimates will result in property assessments larger than necessary. The URD is also <br /> being evaluated for boundary adjustments that could enhance the revenue potential of <br /> the district. <br /> System Development Charges - A portion of the cost of the wastewater system will be <br /> spent on improvements for future development in Coburg. The financial projections <br /> have this share of the cost being paid by SDCs that will be charged new development <br /> after the project is completed. The council will need to an SDC ordinance to complete <br /> the sewer funding package. The preliminary work to establish the SDC is getting started <br /> at this time. <br /> Local Improvement District -The remaining costs of the project will be paid by LID <br /> assessments on properties in Coburg. The amount of the LID assessment will vary with <br /> each property. It is proposed that undeveloped properties will pay less to the LID <br /> because they will be charged an SDC later when they connect. Updated typical <br /> assessment estimates are expected to be available at the August work session. An <br /> City of Coburg Sewer Status Report Page 4 of 5 7/1/2004 <br /> <br />