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. . November 1982 Financial Analysis Guidelines The following guidelines are provided to assist in formulating the financial analyses for the S.B. 439 planning studies. please contact the CWCB staff if you have any questions as to how the financial analyses are to be performed for the study you are conducting. If you think a variation from these guidelines is in order, please discuss it first with the staff. 1. Total Capital Cost Estimates Estimates will be prepared of the "total capital cost" of each alternative in each study. These capital cost estimates will be displayed in an itemized manner in the draft final report without escalation for inflation during planning and construction and without interest for short term construction financing. All costs will be expressed in constant, January, 1982 dollars. 2. Financing Approaches Using the preceding total capital cost estimates as a base, estimates of "total investment costs" and "total annual costs" will be illustrated for each alternative by using two assumed financing approaches: a. State Funding Approach--This approach assumes that a project would be authorized and funded by the Colorado General Assembly through the Colorado Water Conservation Board construction fund. Costs for short term construction financing will not be included. A reasonable schedule of pre-construction and construction activities will be developed beginning with the assumed initiation of planning and feasibility studies in mid-1983 and terminating with the assumed on-line date of the project. Expenditures for all activities will be staged and escalated for inflation at a rate of eight percent per year throughout the planning and construction period. The total of all escalated expenditures will be displayed as the "total investment cost."