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Loan Feasibility Study for Raw Water Acquisition and Utilization Page 43 is in excess of the current statewide average. It is slightly in excess of the 2003/2004 state averages that were over $36.00 per month. The rate, although exceeding the state average, is viewed as reasonable. Of note, the 3.0 mill levy is currently programmed to sunset in 2019 based upon the voters' authorization; however, the District will have five years of additional revenue accumulated prior to the initiation of debt service on the CWCB loan. Those funds will be channeled into the COLOTRUST restricted fund account. The new funds coupled with the existing retained funds and associated interest earnings will be maintained in the restricted account. They can then be utilized to begin covering the loss of the $64,000 of ad valorem tax income occurring in the year 2020. The retained funds with accumulated compounding interest will provide for an additional 10 to 15 years of revenue to offset the $64,000 annual loss carrying the supplemental funding through 2030 to 2035. The District's interim interest cost as the CWCB loan is drawn down from 2007 through 2010 represents costs that can be covered by the District's current revenue stream versus expenditures or if need be, said costs can be covered through either the utilization of retained earnings or a stepped increase in the ERU charges. Potential water rate increases to occur over this period to cover the interim interest expenses would equate to $3.00 per ERU in 2007, $5.30 per ERU in 2008, $7.50 per ERU in 2009 and subsequently $9.25 per ERU in 2010. The degree to which the District may desire to modify the ERU rate structure downward from that shown is a function of the magnitude of retained earnings that the District's board determines to apply toward the project. The following cash flow projections shown on Table 15 have been prepared for the District's projected revenues and expenditures covering all District operations. The projections cover the full 30 -year period associated with the forthcoming CWCB loan. 7.4 LOAN REPAYMENT SOURCES As discussed within this section's previous paragraphs, the District will use a combination of water sales revenues and property taxes authorized under a voter referendum (in a manner that precludes them from having TABOR implications for utilization within the Enterprise Fund) to fund the CWCB debt service associated with the acquisition and development of the new water rights. Existing revenue streams that will be applied to the CWCB loan servicing include $21,689 annually of prior debt service revenue now applied to the existing DOLA EMIA and USDA RD loans. That source of funds is generated from a $1.20 per ERU set aside within the base water sales assessment. Those funds are directed to the Enterprise budget to pay for debt service currently on the two existing loans. Upon paying off the two existing loans, those funds will be channeled directly to service the CWCB debt. Leonard Rice Engineers, Inc. August 2006 — 1018PEN05 GMS, Inc.