PUB00143

• Year: 1992
• Title: Construction Fund Annual Report 1992
• CWCB Section: Finance
• Author: CWCB
• Description: Construction Fund Annual Report 1992
• Publications - Doc Type: CF Annual Report

.

.

.

COLORADO WATER CONSERVATION BOARD

Loloff Lateral Ditch Company
January, 1993

Introduction

The Loloff Lateral Ditch Company was incorporated in 1916 and it provides
irrigation water to 770 acres of farmland about 2 miles south of Kersey in northeast
Colorado. The company stock is owned by 8 shareholders and there are 14 1/2 shares
of stock outstanding. The company wishes to obtain a cost share loan from the
CWCB construction fund to replace the pipeline lateral which carries water to the
shareholders from the Gilmore Ditch.

Problem

The company's existing pipeline lateral is concrete pipe, with mortared joints,
which varies in size from 16" to 24". This pipe is 65 years old and it essentially is
beginning to fall apart. The Soil Conservation Service (SCS) in Greeley has evaluated
this pipeline and recommends that it be replaced.

Proposed Project

The project as recommended by the SCS would replace the existing concrete
pipeline with a PVC pipeline which would entail installation of 9800 feet of pipe. The
estimated cost of the project is $143,000 and the required engineering would be
performed by the SCS in Greeley.

Proposed Financing

The company proposes the following funding for this project:

Agricultural Soil Conservation Service (ASCS)
Special Project Funds (Grant)
CWCB Loan (40 years @ 5% interest)

$ 71,500
71.500
$143,000

Under the above terms the company would have to pay the CWCB $4,167 per
year for 40 years for a total repayment of $166,680.

Although the company would not be contributing funds for the construction of
this project it is to be noted that the annual assessment for repayment of the loan will
be $300 per share which is substantially above the current $75 per share assessment.