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Financial Feasibility Analysis 1. Loan Amount - $1,000,000. The total project is estimated to cost $1.2-1.5 million. The Applicant has funds available in Colotrust to pay the additional monies (those over the amount of the CWCB loan) required to complete the project. We would request a rate of 4% and a term of 30 years. Although this term in excess of our present lease with BLM, they will give written consent to up to 40 years and acknowledgement that Applicant has the right to renew said lease upon its completion. 2. Financial Sources -The majority of the expense of this project will be met with the loan from CWCB. Expenses above that loan amount will be paid with Applicants funds in Colotrust. No other financing will be required. 3. Revenue and Expenditure Projections - A 30 year estimate of revenue and expenditure projections follows. Applicant's primary funds come from water sales and these rates may be adjusted at any time for anticipated shortfalls. Applicant already has funds available to put in a reserve account for the first ten years of this loan. 4. Loan Repayment Sources -The sole source for repayment of the CWCB loan will be from water sales, which is our primary source of income. Other sources of income, such as tap fees or water acquisition fees are used for development and purchasing addition raw water sources. As per the 30 year estimate, small yearly increases in the minimum fee charged on every tap, coupled with a modest growth rate of 2.7%, can generate enough money to operate the District and pay for debt retirement. Present water rates for monthly billing are: Minimum Fee for 3000 gallons $27.00 3001-10,000 gallons 4.00/1000 gallons Over 10,000 gallons 5.00/1000 gallons Tap Fee $5,000. Water Acquisition Fee 2,000. 5. Financial Impacts -Since we are asking that the term of the loan be 30 years, the additional impact of the CWCB loan will raise ever users' minimum fee by approximately $3.25 per month. This increase generates all the money needed to repay the CWCB loan and all future increases in rates will be to cover increased operational costs. Applicant is fortunate in having astate-of--the-art treatment facility on line so no major improvements should be required for the District for quite some time. After the initial increase in the minimum fees, small regular increases of $1.00 per year are all that will be required to meet anticipate expenditures. 6. TABOR~Taxpayer's Bill of Right Issues - Applicant does have Enterprise status and therefore does not have to comply with TABOR issues. 7. Collateral -Applicant will give a Pledge of Revenues as collateral for this loan. There is no real property or water rights associated with the project.