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Financial Plan The total cost of the project is $345,000. $310,500 or 90% may come from a loan with the Colorado Water Conservation Board, and the remainder from the project sponsor, LPBCC. The LPBCC is in strong financial condition, and as indicated in the CWCB Loan Application has no outstanding long-term debt. The CWCB Loan Application is found in Appendix D. A $310,500 CWCB loan at 2.5% interest over a 30-year repayment period would calculate to an annual payment of approximately $16,320. The loan payment of $16,320.amounts to an additional assessment of $11.05 per share or approximately $1.09 per acre foot diverted by the 101 LPBCC wells. The $11.05 can be added to the existing share assessment of $65.00 bring the LPBCC yearly assessment to $76.05 per share. This increase will stay in effect throughout the duration of the loan. The increased assessment will bring in the extra revenue needed to cover the CWCB payment. This financial analysis should stay consistent over the period of the CWCB debt retirement. Collateral 1. The LPBCC can offer a collateral interest in assessments collected from its shareholders backed by an assessment covenant. 2. The LPBCC can offer as collateral the project itself. Institutional Considerations The LPBCC needs authorization to borrow $310,500 from the CWCB Construction Fund. The loan, if approved, from the CWCB will be contingent upon the successful negotiation of a contract between the CWCB and the LPBCC. Agreements with contractors will be finalized upon authorization of the CWCB loan. Opinion of Feasibility The selected alternative is technically and financially feasible. There are no known roadblocks which would keep the LPBCC from successfully completing this project. Feasibility Study Lower Platte and Beaver Augmentation Project January 2004 8