C150150 Feasibility Study

• Contract/PO #: C150150
• Contractor Name: Lower Arkansas Water Management Association
• Contract Type: Loan
• Water District: 67
• County: Bent
• Loan Projects - Doc Type: Feasibility Study

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As shown in the above table, a total of$572,596 will need to be generated from dues and assessments
during 2004 through 2006, $486,439 in2007, $546,342 during 2008 through 2009, $536,272 during
2010 through 2013, $520,981 during 2014 through 2033, $413,481 during 2034 through 2036 and
$214,297 during 2037 through 2043 to cover LA WMA' s operating, engineering and legal expenses
and to cover LA WMA's CWCB loan payments and the additional 10% CWCB loan retainage
requirement.

Accordingly, since LA WMA's current level of dues and assessments generate
$405,230 in annual revenue, LA WMA's annual revenue will need to increase from the current level
by 80% during 2004 through 2006, by 39% in 2007 by 68% during 2008 through 2009, by 63%
during 2010 through 2013, by 55% during 2014 through 2033, by4% during 2034 through 2036 and
by 0% during 2037 through 2043. Please note that these increases are all based on the current level
of income to LAWMA of $405,230.

E. Financial Impact on LA WMA Members.

The costs to LA WMA's individual members of obtaining anew loan from the CWCB
for the acquisition of one-half of the Keesee water rights as outlined above can be figured as follows.
LA WMA can increase its annual revenue to cover these costs by increasing its membership dues, by
increasing its assessments on shares of LA WMA stock or by increasing its membership dues and
assessments on shares of LA WMA stock.

The table below depicts the level of share assessments that will be required to cover
LA WMA's annual operating expenses and its current CWCB loan payments without the purchase
of one-half of the Keesee water rights. The table below assumes that LA WMA would only increase
its share assessments from the current level of $11.30 per share to cover these costs.

PROJECTED LA WMA SHARE ASSESSMENT INCREASES TO COVER
OPERATING EXPENSES AND EXISTING CWCB LOANS

2003 2004 - 2006 2007 2008 - 2009 2010 - 2013 2014 - 2036 2037 - 2043
$11.30 $13.96 $9.30 $12.54 $10.55 $11.75 $1.01

The share assessment increases amount to an average assessment of $12.71 per share from 2004
through 2009, or an average assessment of$I1.78 per share from 2004 through 2036.

The table below presents the impact of this Keesee loan proposal on LA WMA members if LA WMA
were to only increase its share assessments from the current level of$II.30 per share to cover these
costs.

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