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<br />Financial Plan <br /> <br />The total cost of the project is $75,000. $67,500 or 90% may come <br />from a loan with the Colorado Water Conservation Board, and the <br />remainder from the project sponsor, UPBCC. The CWCB Loan <br />Application is found in Appendix B. <br /> <br />The UPBCC is in strong financial condition, and currently has <br />only one long term debt outstanding. That debt is an emergency <br />loan with the CWCB. See financial reports found in Appendix C. <br /> <br />A $67,500 CWCB loan at 2.25% interest over a 10-year repayment <br />period would calculate to an annual payment of approximately <br />$8,370. The loan payment of $8,370 amounts to an additional <br />assessment of $7.05 per share or approximately $0.70 per acre <br />foot diverted by the 93 UPBCC wells. The $7.05 will be added to <br />the existing share assessment of $75.00 bring the UPBCC yearly <br />assessment to $82.05 per share. This increase will stay in effect <br />throughout the duration of the loan. The increased assessment <br />will bring in the extra revenue needed to cover the CWCB payment. <br />This financial analysis should stay consistent over the period of <br />the CWCB debt retirement. <br /> <br />Collateral <br /> <br />1. The UPBCC can offer a collateral interest in assessments <br />collected from its ~hareholders backed by an assessment covenant. <br /> <br />2. The UPBCC can offer as collateral the project itself. <br /> <br />Institutional Considerations <br /> <br />The UPBCC n~eds authorization to borrow $67,500 from the CWCB <br />Construction Fund. The loan, if approved, from the CWCB will be <br />contingent upon the successful negotiation of a contract between <br />the CWCB and the UPBCC. Agreements with contractors will be <br />finalized upon authorization of the CWCB loan. <br /> <br />Opinion of Feasibility <br /> <br />The selected alternative is technically and financially feasible. <br />There are no known roadblocks which would keep the UPBCC from <br />successfully completing this project. <br /> <br />Feasibility Study <br />Upper Platte and Beaver <br />Badger Creek Aug Project <br />April 2003 <br /> <br />10 <br />