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Loan Feasibility Study for Raw Water Acquisition and Utilization Page 31 locations will have minimal impacts on the proposed pipeline alignment. An evaluation of well siting alternatives will be performed as part of the selected alternative to identify the optimal well location with respect to well yields, water quality considerations, and institutional considerations. 7. FINANCIAL FEASIBILITY ANALYSIS 7.1 LOAN REQUEST The selected alternative as detailed in prior text is Alternative 3. Table 5 presents the Opinion of Probable Cost for the selected alternative. The projected cost for the project totals $9,729,926. For overall planning purposes, the budget is established at $9,730,000. After review of various project financing approaches, the District board has elected to pursue the maximum participation allowed by CWCB or 90% of the total project cost. Those costs either deemed not directly participatory by CWCB or previously paid by the District will fall within the 10% local match. Based upon the established project budget of $9,730,000, the amount requested from CWCB is $8,757,000. The District requests the current effective interest rate of 3.25% on the loan together with a 30 -year amortization schedule. 7.2 FINANCING SOURCES The District has reviewed on a macro basis the overall financing approach it desires to pursue on the project. Other potential funding sources to be used in conjunction with CWCB funds have also been evaluated. Given the magnitude of the project and the District's desire to maintain reasonable cash balances within its current funds, the Colorado Department of Local Affairs (DOLA) through its Energy and Mineral Impact Assistance (EMIA) program will be approached by the District for some assistance. The District will seek $500,000 of EMIA grant from that organization for incorporation into the overall project financing. The Colorado DOLA EMIA grant assistance will be pursued within DOLA's normal application cycle. The next application submittal deadline is December 1, 2006. An application will be prepared for that cycle. The application will be heard at the committee meeting that will be set for late February or early March of 2007. A final funding determination will be made most likely by April of 2007. Such will set the stage for the preparation of a formal contract between the Colorado DOLA and the District for the utilization of those funds. Funds should be available by approximately July of 2007, coincidental with the Colorado General Assembly's authorization of the expenditure of funds as a result of the approval of the Construction Fund Bill in May with funds available beginning July I". In the event the District is unsuccessful in securing the EMIA grant, it has retained earnings sufficient to offset the loss of that particular revenue source. Additional needed funds will be provided in the form of a local cash match. In 1997 the District received voter approval for the assessment of a 3.000 mill levy beginning in 2000 and continuing for a 20 -year period. The voter question was phrased in such a manner that the proceeds from the mill levy are eliminated from having TABOR related implications. The mill levy has been assessed Leonard Rice Engineers, Inc. August 2006 — 1018PEN05 GMS, Inc.