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. . CHAPTER VIII FINANCIAL PROGRAMS . The purpose of this chapter is to demonstrate the financial feasibility of the project and the ability of the District to repay the CWCS loan, In this analysis all costs of the project will be allocated to irrigation, No signilicant amounts of reservoir water are used for other purposes, The Colorado Division of Wildlile leases Julesburg Reservoir for a fairly nominal sum for use as a wildlile refuge, but the District maintains the right to fully use and drain the reservoir when necessary for Irrigation purposes, No rehabilitation cost can justiliably be allocated to the fish and wildlile uses, As described in the previous chapter, revenues for repayment of the project costs will be derived from the increased District tax assessment (effective 1991) and the reduction of extraordinary engineering and construction costs, A projected future budget is shown in the last column of Table 3, . . . Loan ReDavment Table 14 was prepared to show the payback schedule for the CWCS construction loan assuming that surplus revenues available after meeting interest payments and operating expenses would be applied to the loan principal. In 1988 and 1989, the District acquired equipment and financed a portion of the cost with a municipal lease agreement. It was assumed that the municipal lease loan balance would be paid out of the operating revenue concurrent with repayment of the CWCS loan principal. Upon completion of lease repayment in 1994, $10,000 per year would be paid into the emergency fund until the fund balance exceeded $200,000, at which time the annual payment would be redirected to the CWCS loan principal. The initial emergency fund balance (1991) is assumed to be $100,000, which approximates the year-end fund balance in recent years. It has also been assumed that income from assessments would remain constant from year to year (no increases), Under the scenario described above, the loan would be repaid in 11 years, The CWCS loan Interest rate is assumed to be fIVe percent per year, . . . Table 15 was prepared assuming repayment of the CWCS loan would proceed on a 20 year amortization schedule. It was assumed that the municipal lease repayment and the capitalization of the emergency fund would be operated as discussed above for Table 14, Under this scenario, the operating budget would show a surplus of revenues in each of the 20 years of loan repayment. The surplus revenues could be used in several ways. The surplus could be used to accelerate the . 21 .