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6.0 FINANCIAL PROGRAM <br />6.1. LOAN AMOUNT AND FINANCING SOURCES <br />As documented in Appendix D, opinion of total cost for the preferred alternative, the <br />Canterbury Tunnel pump station and pipeline to Evans Gulch is $2,520,000. The District <br />has obtained a grant for $500,000 from the Department of Local Affairs for the project <br />and it is expected the District will secure $200,000 from U.S. Fish and Wildlife Service <br />that will be applied to the project. This leaves $1,820,000 that remains to be financed. <br />The annual payment associated with a Colorado Water Conservation Board (CWCB) <br />loan for $1,820,000 at four percent interest over a 30-year repayment period is <br />$105,251. <br />6.2. FINANCIAL PROJECTIONS <br />A financial plan has been prepared to show the projected revenues and expenses of the <br />District and demonstrate the ability of the District to fund the project and to repay the <br />loan sought from the CWCB. The financial plan is included in Appendix E. The District's <br />current revenues indicate they are adequate to fund the annual loan payment. However, <br />the District has indicated it can institute additional rate increases in future years, if <br />necessary to finance the project. <br />6.3. COLLATERAL <br />The District receives revenue from its customers and intends to pledge the revenue as <br />collateral to assure repayment of the CWCB loan. The District's may also consider its <br />water rights, which are worth millions of dollars more than the cost of the project, as a <br />potential source of collateral for the CWCB loan if necessary. <br />6.4. CREDITWORTHINESS <br />The District is considered to be in a strong financial condition and has no long term debt <br />outstanding. <br />_J W. W. Whseler and Associotas, Ine. 5/19/2010 Final <br />— 1 tUot�r Rcsouress Eeglnesn Page 23 <br />