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Financial Plan The total cost of the project is $105,000. $100,000 or 95% may come from a loan with the Colorado Water Conservation Board, and the remainder from the project sponsor, the LDC. The CWCB Loan Application is found in Appendix C. The LDC has sufficient cash assets to pay their portion of the project cost, $5,000. The LDC is in strong financial condition and currently has no long term debt outstanding. A $100,000 CWCB loan at 2.75% interest over a 30-year repayment period would calculate to an annual payment of approximately $4,950. The loan payment can be easily offset with savings from a reduction in GASP assessments and the revenue generated from the lease of excess augmentation credits from the project. The LDC's ability to make loan payments will only improve over the period of the CWCB debt retirement because as their loan payment remains the same GASP assessments and the value of excess augmentation water will continue to increase. Collateral 1. The LDC can offer as collateral, all potential revenues from the recharge water credits generated from the project. 2. The LDC can offer as collateral, all of the project facilities. Institutional Considerations The LDC needs authorization to borrow $100,000 from the CWCB Construction Fund. The loan, if approved, from the CWCB will be contingent upon the successful negotiation of a contract between the CWCB and the LDC. Agreements with contractors will be finalized upon authorization of the CWCB loan. Opinion of Feasibility The selected alternative is technically and financially feasible. There are no known roadblocks which would keep the LDC from successfully completing this project. Feasibility Study Lowline Ditch Company Recharge Project December 2002 10