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District. The average of $32,000 indicates a Municipal Middle Income lending rate for the requested loan. CWCB Lending Policy No.8 states in part that" the costs of water rights acquisition are eligible for a CWCB loan ifthe purchase satisfies an existing water need or shortage". The proposed purchase by the EDWD is to provide an adequate water supply for the eventual buildout of the District. The assets to be acquired are to provide water only within the District's existing service area. About 75 percent ofthe residential properties in the, District have completed homes with buildout expected to occur in about 20 years or sooner. All future development has been platted and almost all the necessary improvements are in place to provide service for full development. The proposed purchase presents the District with a unique opportunity to acquire assets that are already decreed for District use and provide a reliable supply of water for the future. In effect, the District is replacing the existing Vidler lease with the assets to be purchased. Financial Analvsis . Of the total purchase price of$3.40 million, the EDWD has paid $300,000 to Vid1er and the City of Golden for a portion of the water rights. The District proposes to finance the . remainder of the purchase with a loan of $2.55 million from the CWCB and a commercial bank loan of$550,000 as shown in Table 1. Table 2. ! EDWD Fnnding Scenario Paid December 2000 $300,000 $2,550,000 $550.000 $3,400,000 CWCB loan Commercial bank loan Total Funding Staff has analyzed the District's financial conditIon from audit reports for the years 1998 through 2000 and for a future year when debt repayment on the CWCB loan and the commercial bank loan begin. The ratios were caicu1ated per Board Lending Policy No.4 and are displayed in Table 2. The table demonstrates that the District is currently in sound financial condition and is likely to remain so in the future. 4 i .