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Table 2 Proposed Funding Scenario . Year Project Component Amount ($) 1999 CWCB Construction Fund Loan 1,000,000 1999 CDOT In-kind Construction Services 418,140 1999 County and local government cost-sharing 505,063 agreements and other sources Total $1,923,203 FINANCIAL ANALYSIS The total cost of the entire project is approximately $2,4 million. The Board's investment in the project would total $1.0 million if the loan request were approved, which is about 42% of the total cost. The source for repaying the loan will consist of an Enterprise Fund, to be established by the District in 1999, that will place a service fee of $4,00 per month on all customers in the service area. Based on the current number of taps, the new service fee would generate $105,984 annually, The estimated annual loan payment is $63,209 assuming a 30-year term with an interest rate of 4,75 percent. The annual revenues for the project are therefore well in excess of the estimated annual payments, Other than the requested CWCB loan, no other liabilities would be incurred for this project. . Based on the $1.0 million CWCB loan and the 2208 existing taps, the debt per tap is calculated to be $453 per tap, This is a very reasonable number and is not considered to be prohibitive at all. DISCUSSION CWCB staff believes that the District's proposed conveyance improvement project is economically, fmancially, and technically feasible, The investment is not unusually high compared to most other similar projects, and the repayment of the loan will only result in a small service fee to the District's customers. Existing facilities are not adequate for the conveyance of runoff or for the protection of adjacent properties. Previous detailed analyses and studies have demonstrated the need for the project. Alternatives to addressing the problem have been investigated over. the past 20 years, however the proposed project has been recommended as the best alternative by the consulting engineers, and has been recommended by the District and the affected local governments. The District's ability to repay the CWCB loan is based on a minimal service fee (estimated to be $4,00 per month per customer) and appears to be very reasonable, Creation of the new service fee will not require a public vote. 4 .