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SECTION VI <br />FINANCIAL PROGRAM <br />Amount of Requested Loan for the Enlargement of Ziegler Reservoir <br />In 2009 the District received a CWCB loan for the Ziegler Reservoir Water Management <br />System that has been recently completed. The 2011 Enlargement of Ziegler Reservoir is <br />an integral component of the overall project. The total construction budget estimated for <br />the reservoir project is $3,161,487. The District is seeking funding from the CWCB for 90 <br />Percent of the total construction cost, or $2,845,338. The total loan cost, including a 1 <br />Percent service fee of $28,453, is $2,873,791, which will be paid back over a 20-year <br />term. The current standard municipal rate for high income communities is 4.75 Percent <br />including a rate reduction of 0.25 Percent for 20-year loans, resulting in annual <br />payments of $225,737.63. <br />The District currently has over $2.0 million in capital reserves to provide the required one <br />year payment reserve of $225,737.63. This amount will be held in reserve in accordance <br />with the CWCB loan requirements. <br />Since 90 Percent of the funding for this project is from the CWCB, with the 10 Percent <br />balance and any costs that exceed the estimated project cost paid directly by Snowmass <br />Water and Sanitation District, the District would have no other debt service for this <br />project. Operation and maintenance costs are minimal, involving electrical, pump and <br />grounds maintenance costs. <br />Summary of Sources <br />The project budget is $3,161,487 with 90 Percent being funded through the CWCB Loan <br />Program and 10 Percent funded by the Snowmass Water and Sanitation District. Any <br />unforeseen project overages will be directly paid for by the Snowmass Water and <br />Sanitation District. <br />Projection of Revenues and Expenditures <br />The projected annual operating revenues and operating expenses for this project are <br />shown below. Money from the annual net operating gain would be available to fund the <br />replacement of infrastructure and the repayment of the CWCB loan. The projected <br />annual revenues and expenses are shown in Table No. 2. <br />�,a u�. W Ulheeler nnd puvciates, Inc. Feasibility of Enlargment of Ziegler Reservoir <br />�'1 O1JaCar Rasaur¢�s frtgin�acrs Page 12 <br />