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PINEWOOD SPRINGS WATER DISTRICT <br /> NOTES TO FINANCIAL STATEMENTS <br /> December 31, 2011 and 2010 <br /> NOTE 5 - LONG TERM OBLIGATIONS - continued <br /> $2,811,689 Colorado Water Conservation Board Loan. Loan is dated February 1, 2005 <br /> from the Colorado Water Conservation Board ("CWCB") to fund the completion of a new <br /> storage reservoir, pump stations, new water pipelines and other system components, and to <br /> purchase water rights. The CWCB will pay the District for eligible project costs on a periodic <br /> basis. The loan has an annual interest rate of 4% and is due annually beginning May 1, 2010. <br /> The loan term is 30 years from substantial completion of the project. Accrued interest is due <br /> May 1, 2009. The District irrevocably pledges revenues levied for purposes of repayment and <br /> any other funds legally available to the District in an amount sufficient to pay the annual <br /> payment due. The District shall maintain a debt service reserve account and deposit an amount <br /> equal to one-tenth of an annual payment, or $16,260, annually for the first ten years of <br /> repayment beginning on the due date of its first annual, May 1, 2010. At December 31, 2011 <br /> the District was in compliance with this covenant and the reserve balance required is $32,522. <br /> Principal Interest Total <br /> 2012 $ 54,223 $ 108,377 $ 162,600 <br /> 2013 56,393 106,207 162,600 <br /> 2014 58,648 103,952 162,600 <br /> 2015 60,994 101,606 162,600 <br /> 2016 63,433 99,167 162,600 <br /> 2017-2021 357,319 455,681 813,000 <br /> 2022-2026 434,734 378,266 813,000 <br /> 2027-2031 528,921 284,079 813,000 <br /> 2032-2036 643,513 169,487 813,000 <br /> 2037-2039 451,238 36,562 487,800 <br /> $ 2,709,416 $ 1,843,384 $ 4,552,800 <br /> Page 22 <br />