C153787 Approval Letter - Laserfiche WebLink

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. . . . . Smith Ditch Project - Sources of Funding Entity Grant Loan Percent Participation CRWCD $20,000* 11% CWCB $50,000 27% FSA $8,000 4% UYWCD $105,000** 57% Totals $133,000 $50,000 $183,000 * Amount applied for. ** Actual amount will depend upon final costs of construction. The applicant is requesting a 20-year loan for $50,000. The 1997 lending rate for a 20-year agricultural loan would be 3.50 percent resulting in annual payments of about $3,500. This would be the only long-term debt of the Corporation. Assuming about $500 per year in operating and maintenance expenses, total annual expenditures would amount to $4,000 per year or about $3.30 per acre-foot of average annual yield. A loan from the Small Project Loan Account is requested because the Smith Ditch irrigators wish to proceed to construction in August or September of this year in order to avoid another irrigation season next year in which little or no water may be available. A delay for another year would thus result in undue hardship.. Recommendation Staff finds the project to be economically, financially and technically feasible and recommends a 20-year loan in the amount of$50,000 from the Small Project Loan Account to the Smith Ditch Corporation for the purpose of constructing a new diversion structure to replace the existing structure on Elkhead Creek. Based on the Board's 1997 lending rate for agricultural projects and a 20-year loan term, a 3.50 percent lending rate is recommended. Staff further recommends that the Board find that the applicant is eligible for a loan from the Small Project Loan Account since any delay would result in undue hardship. As security for the loan, the Smith Ditch Corporation will pledge revenues from assessments and a certificate of deposit equivalent in amount to one annual loan payment. cc: Keith Pankey, Smith Ditch, Inc. John Fetcher, UYWCD Linda Bassi, AGO Attachments 3