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Addendum to Center of Colorado Water Conservancy District's Loan Application to CWCB for Smelter Pipeline Reservoir Project Page 3 1.0 of this Addendum. C. Sponsor. The Project sponsor and sole owner is the Center of Colorado Water Conservancy District. D. Regulatory permits and approvals. The SPR is an existing non jurisdictional reservoir and it will remain non jurisdictional after completion of the modifications. Center has obtained the US Army Corps of Engineers' 404 Permit (Copy attached) and Parts County has determined that the Project is exempt from the County's 1041 Permit Regulations (copy attached). The Division Engineer for Water Division No. 1 has approved the reservoir outlet works and discharge to Mosquito Creek (copy attached). Water rights for the SPR are already adjudicated in Case No. W-4322 and 09CW145 (copies of decrees attached). E. Revenue Sources and Financial Feasibility of Project. Center of Colorado is a Title 37 special district and it is funded by a 1.0 mill ad valorem tax on the real property located in Park County. Center of Colorado "De- Bruced" in 2000 and is authorized to retain all excess collected revenues. At the November, 2010 General Election, Center obtained voter approval for the borrowing of funds for the Project. A copy of the approved ballot initiative is attached. Center of Colorado's general fund revenues from its tax revenue sources for 2012 will be approximately $419,195.00, including abatements and delinquent taxes. A budget and cash flow analysis is attached. Center currently has $776,878.00 in non - restricted reserves, not including additional property tax revenues which will be received from the June, 2012 property tax payments. The proposed loan for the SPR will be repaid from Center's non - pledged general fund revenues. At present, Center has pledged $54,649.70 per year of its revenues to the CWCB for Loan No. C150276 which was used to build the James Tingle Reservoir Project. In addition, Center has an annual note payment to the Bargas Family for $32,276.67 for the purchase of the Randall and Sessions Ditch Water Rights. The debt to the Bargas Family is ,secured by a deed of trust on the water rights and not the revenues of the district however, those revenues are the source of repayment. The loan from the Bargas Family has a current balance of $1,196,287.00 and is due in June, 2018. The annual payment on the loan is $225,932.12; however, the Centennial Water & Sanitation District is responsible for payment of 85.714% of the payment or $193,654.00. Thus Center's net annual payment on the Bargas Family loan is $32,276.67. Center's total debt service, not including the proposed new loan for the Project, is $86,926.37 per year vs. revenues of 419,195.00 or approximately 21% of revenues. With a new loan for the Project of $400,000.00, and estimated annual payments of approximately $47,000 (assuming a 3% interest rate and a 10 year