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County Council Transmittal of Kilohana Sewer Improvement District — Implementation Study, Kilohana Sewer Improvements Financing Analysis Report, and Finance Department Memorandum Page 5 of 6 Table 3 shows the total estimated construction costs for sewer improvements within the improvement district boundary is $8,510,000 (2006 dollars). This cost covers installation of gravity sewers, low- pressure sewers and sewer laterals in the County right -of -way up to property lines (see Tables 4 through 8 for sewer improvement costs estimated for the other subdivisions). It should be noted that the sewer improvement costs depicted in Tables 3 through 8 do not consider closure of existing single - family and Large capacity cesspools, pump stations, grinder pump systems on residential properties, reconstruction of selected existing sewers within privately -owned utility easements and connection of the church and school. The Implementation Study assumed these costs were to be borne by respective property owners. The Financing Analysis Report by Goodwin Consultants determined that a Community Facilities District (CFD) was the ideal method of financing over an Improvement District (ID). The boundaries of the Kilohana CFD were assumed to correspond to the improvement district boundary in Exhibit 3.2 excepting the Kahakai Elementary School and Lutheran Church. The CFD analysis used the estimated construction costs in Table 3 which were inflated to 2007 dollars by applying a 3% annual inflation rate. The CFD analysis also included costs for closure of existing single - family and large capacity cesspools, pump stations, grinder pump systems on residential properties and associated design costs resulting in a complete sewer system facility for the community. In order to spread the costs in a manner that accommodated a variety of housing types in the area, the following critical assumptions were made: 1. Under County's direction, the CFD analysis included two scenarios: Scenario 1 assumes all of the facilities ($16.9 million) are funded through the Kilohana CFD while Scenario 2 assumes the County will contribute $1.5 million to pay for a portion of these facilities, reducing the total amount that must be funded through the Kilohana CFD to $15.4 million. 2. The CFD - financed costs are delineated between Kilohana costs and non - Kilohana costs under Scenarios 1 and 2. Kilohana costs are allocated to the Kilohana Subdivision only while non - Kilohana costs are allocated to the remaining subdivision (i.e., Ali'i Kai, Kamani Tree, Komohana Kai, and Kalani Makai). This resulted in a generation of four (4) preliminary special tax rates (assumes special taxes increase of 2% per year) under each scenario: Scenario 1: Kilohana w /Grinder Pump: $3,030 Kilohana w/o Grinder Pump: $2,450 Non - Kilohana w/ Grinder Pump: $2,320 Non - Kilohana w/o Grinder Pump: $1,730 Scenario 2: Kilohana w /Grinder Pump: $2,980 Kilohana w/o Grinder Pump: $2,410 Non - Kilohana w/ Grinder Pump: $2,080 Non - Kilohana w/o Grinder Pump: $1,560 County of Hawaii is an Equal Opportunity Provider and Employer