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" " e . 0' Nick Ioannides May 18, 1988 Page 2 $676,134.65. The approximate payoff is $176,192.38. As noted that may change because of interest rate changes. From the information that was presented, and particularly looking at the bottom paragraph on Attachment "C", it is my initial interpretation that North poudre will pay the higher rate when it is getting money the interest of which is excluded from gross income for Federal Income Tax purposes. However, we will follow up with the Federal Government and find out about that for certain. I think you need to figure on the higher figure. The program is not one which allows for further nego- tiations on the discount. Apparently what will happen for those that cannot or will not take advantage of this plan is there will be an attempt then made to discount these loans with the private sector. North Poudre believes that there will be a substantial benefit to the North poudre stockholders and indirectly to wa- ter users in the State of Colorado by taking advantage of this program. It should help make more water projects possible by reducing existing debt. Mr. Stieben has been authorized by the Board to make this immediate inquiry and a tentative request for assistance from the Colorado Water Conservation Board so that North poudre can do this - namely repurchase the loan at a discounted rate. North poudre asks for the entire amount necessary to pay the United States. What North poudre would propose to do if assistance is forthcoming from the State, is to keep its level of payment at approximately $20,000.00 a year. At that level of payment with 5% money from the Colorado Conservation Board, Park Creek Reservoir would be paid for in approximately 12 years or less as opposed to 33 years on the existing payment schedule. The State would get back money in a short period. The stockholders would not have to increase assessments to do this. As a final closing item of information, I'm enclosing a copy of the decree that was obtained shortly after Park Creek Reservoir was built. This will give you a little additional information about this Reservoir. It was the last Reservoir built by The North poudre Irrigation Company and is located north and west of Wellington. It is an earthen fill structure at the head of the North poudre system and is a very valuable structure for regulating flow throughout the entire North poudre system.