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Gypsum Loan Feasibility Outline <br />CWCB Water Project Loan Program <br />Page 33 of 33 <br />a prior written notice (90 day minimum) to the Authority and payment of a <br />premium determined by the Authority. The principal and interest shall be payable <br />solely from the net revenue derived by the town from the operation of the water <br />system. The obligation is carried in the Town's Water Utility enterprise business- <br />type activity. The Town's annual debt service to CWRPDA is as follows: <br />Year Ending <br />December 31 Principal Interest Total <br />2009 $ 45,000 $ 17,513 $ 62,513 <br />2010 45,000 14,925 59,925 <br />2011 50,000 12,337 62,337 <br />2012 50,000 9,400 59,400 <br />2013 55,000 6,462 61,462 <br />2014 55,000 3,232 58,232 <br />Total Bonds Payable $ 300,000 $ 63,869 $ 363,869 <br />iv) Audit Reports. Please see Appendix 13 for copies of the three most recent <br />audit reports of financial statements. Gypsum will be auditing the 2008 figures <br />later this spring, and can update CWCB with those figures once complete upon <br />request. <br />2.6 Conclusions and Recommendation <br />The feasibility study outlined above recommends that Alternative #3 is the best <br />alternative for Gypsum to meet its long term goals for providing adequate water <br />resources to its community in a cost effective manner. While the watershed could <br />provide additional water for storage, the engineering issues and additional cost make <br />Alternative # 3 preferable. The Town's population and projected financial income, even <br />at a very conservative rate, indicate that revenues will be available to adequately repay <br />the loan amount sought. The recommendation is to seek appropriate funding for <br />Alternative #3 at this time. <br />W:\GYPSUM~37 D2 LEDE Reservoir~Documents\CWCB FeasStudy&Appx~FINAL CWCB Loan Feasibility Oudine 3-31-09.doc <br />