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The Cost Per Acre -Foot of Water Saved <br />$758,200 - 1,237 A -Ft = $612 <br />The Cost Per Acre -Foot of Water Saved Per Year <br />.$758,200 _ 1,237 A -Ft _ 20 years = $30.60 <br />The cost of $30.60 per acre -foot water for the water saved in an average year is at the low end of the <br />cost of rental water in northern Colorado. Rental water has typically been $25 to $50 per acre -foot over <br />the past five years. The cost per acre -foot of water of $612 is much less than the value of water on <br />today's market. One share of Highland Ditch water is valued at $103,000 which provides an average <br />of approximately 47.4 acre -feet of water per share as shown in Table 1. This would place the value of <br />the water saved at $2,173 per acre -foot. <br />The maximum increase in assessments expected during the life of the loan is expected to be about $50 <br />as shown in Table 6. The actual cost per share of stock per year is $51, however, the use of cash on <br />hand by the Company to pay for their portion of the project will reduce the increase in the yearly <br />assessments. The average increase in assessments from 2005 to 2024 is $21.75 per year based on Table <br />6. <br />Based on the evaluation above, we believe the cost to repair the Foothills Dam to be Feasible and cost <br />effective. We also believe the average increase in assessments to be acceptable with the average <br />increase being approximately 22% using a base assessment of $100. The Company has adequate <br />collateral and their does not have any debt other than the proposed loan. <br />Foothills Dam- 03.076 Page 10 <br />