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<br />. <br /> <br />. <br /> <br />Agenda Item 7a. (Updated 9/11196) <br />September 9, 1996 <br /> <br />2 <br /> <br />A loan of $100,000 will have an annual payment of about $5800. There are 84 shares on <br />the lower end of the ditch,. so a share assessment increase of about $70/share will be <br />needed. The current assessment is $20/share. The new assessment of about $90/share will <br />represent a cost of $2 to $4 per acre foot delivered, based on 1 to 2 acre feet per acre <br />delivery to the 1920 acre service area. <br /> <br />Water diverted by the Decker Lateral Ditch is used for agricultural purposes. The loan should <br />thus be at the "Agricultural" rate of 4.25% for 30 years, as set by the CWCB November 6, <br />1995. <br /> <br />The Company needs to complete the rehabilitation project by December 30, 1996 as -a condition <br />of the CFSA grant. This would also provide an adequate water supply for its users for the 1997 <br />irrigation season, This project should be eligible for funding from the Small Project Loan <br />Account, because the loan amount is not more than $100,000, and because the delay associated <br />with General Assembly approval would result in undue hardship on the borrower. <br /> <br />The project will benefit 16 shareholders on the lower end of the ditch, referred to as to <br />Lower Decker Lateral. These shareholders will seek to have the Decker Lateral Company <br />sponsor the project, on the condition that only the beneficiaries are responsible for the <br />assessments necessary to make the loan payment to the CWCB. If the Decker Lateral <br />Shareholders do not agree to sponsor the project, the 16 will form the "Lower Decker <br />Lateral Company" to contract for the loan. CWCB loan approval should be to the Decker <br />Later Company, OR to the Lower Decker Lateral Company. <br /> <br />COLLATERAL <br /> <br />The CWCB would take a collateral interest in the stream of revenue from shareholder <br />assessments. There are 16 shareholders, and 84 total shares on the Lower Decker Lateral. <br /> <br />The Company could also put one payment in an account with the State Treasurer. <br /> <br />STAFF RECOMMENDATION <br /> <br />The staff recommends: <br /> <br />I. That the CWCB finds that the Decker Lateral Company (or the e:roup of 16 <br />Lower Decker Lateral Shareholders) is eligible to apply for a loan from the Small <br />Project loan Account because the loan amount does not exceed $100,000, and <br />because delay in completing the project would result in undue hardship on the <br />Borrower, and <br />