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<br />Springdale Ditch Company <br />May 19-20, 2003 <br /> <br />Agenda Item 18b <br />(Updated May 27, 2003) <br /> <br />Selected Alternative 3 consists of the following: <br /> <br />. Two new recharge ponds with small earthen dams will be constructed on existing <br />irrigated farm ground. <br /> <br />. An existing unused recharge pond will have a small pumping station installed in the ditch <br />to lift water into it. <br /> <br />. Two wells will be drilled next to the riverbank and piped backed to the ditch. This will be <br />done to provide water during times in the winter when the river freezes. <br /> <br />. One augmentation well will be drilled 4,600 feet from the river, with a 1,1 OO-foot pipeline <br />extending to the Sterling #1 Ditch. This will provide a way to get water to the river, by <br />exchange, to satisfy a senior calling water right. <br /> <br />. All of the above features, as well as the end of the ditch itself, will be equipped with <br />proper measuring devices. <br /> <br />The implementation schedule calls for completion of financing arrangements and final design in <br />May 2003. Construction would start in Spring 2003, and be completed within 1 year. <br /> <br />Financial Analvsis <br />The total estimated cost of the project is $135,000 (including engineering costs), and water is <br />used for agricultural purposes. Staff is recommending a Small Project loan in maximum amount <br />of $121 ,500 (90% of the total project costs.) The recommended loan terms are 30 years at <br />2.75% or 20 years at 2.5%, at the borrower's option. <br /> <br />Table 1 is a summary of the financial aspects of the project with a $121,500 CWCB Loan. The <br />annual payment would be $6,600 (including the 10% reserve requirement) at the loan terms of <br />2.75% for 30 years. This represents $0.59 per acre-foot, based on expected annual diversions <br />of 11 ,147 acre-feet. The Company's cost share will come from a one-time special assessment <br />of the shareholders (or from a short term bridge loan from a bank.) <br /> <br />Table 1. Financial Summary <br /> <br />Project Cost $135,000 <br />Number of Shareholders 52 <br />Number of Shares of Stock 831.5 <br />CWCB Loan Amount $121,5000 <br />CWCB Loan Pavment (includes 10% reserve) $6,600 <br />Current assessment per share $40 <br />New assessment per share $48 <br />Annual Loan Cost per acre-foot (Expected averaae diversions 11,147 ac-ft.) $0.59 <br /> <br />Credit worthiness: The SDC has no existing debt. Table 2 shows the Financial Ratios for the <br />SDC and indicates, with the exception of Cash Reserves, average to strong ability to repay a <br />$121,500 CWCB loan with the project in place. <br /> <br />3 <br />