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<br />Julesburg Irrigation District <br />November 20-21, 2000 <br /> <br />Agenda Item 14b. and 15a. <br />(Updated November 22, 2000) <br /> <br />. In 1997 the Harmony #1 diversion washed out during a flood. The diversion was rebuilt at a <br />cost of $700K, of which $51 OK came from an emergency loan from the CWCB. The remaining <br />$190K plus $10K for interest during construction, was paid by the JID. The annual payment on <br />the CWCB loan is $28,630 with first payment due February 1, 2001. Failure of the Harmony <br />#1 diversion constitutes a "significant and unexpected financial difficulty. " <br /> <br />. In 2000 the District evaluated the Peterson-Lodgepole drop structure with technical assistance <br />from the NRCS. The structure is in poor condition and could fail during a flood. The repair cost <br />is $145K, of which $34K will be paid up-front by the District. If approved, the District will also <br />be liable for a loan payment of about $6,300 for 30 years. This adds to the financial difficulty <br />associated with the Harmony #1 diversion. <br /> <br />. The JID has performed a preliminary evaluation of the Peterson Ditch diversion on the South <br />Platte River. The Peterson Ditch is a critical structure for water management on the lower <br />South Platte River. It is already being used for augmentation, and is being considered as a <br />way to deliver water to a future "sustainment" reservoir. The Peterson Diversion was <br />originally constructed over 100 years ago, and is at the end of its useful life. The District needs <br />to replace the Peterson Diversion before it fails, creating an emergency situation. <br />Replacement is tentatively scheduled within the next 10 years, at a cost of $1 million. With a <br />CWCB loan, the District will need to fund approximately $120K, and then have a loan payment <br />of approximately $50K per year. This will add to the financial difficulty of the District. <br /> <br />. The JID has identified 7 check structures that need replacement over the next 10 years at a <br />total cost of approximately $30K. The District will fund this work itself, which will add to the <br />financial difficulty of the District. <br /> <br />. There is a financial hardship based on the cost per acre-foot delivered to JID shareholders, <br />when compared to other irrigation districts and companies on the South Platte. It costs the <br />JID about twice the area average to deliver water to its shareholder's headgates. <br /> <br />Table 6: Com arison of Water Delive <br />District/Company <br /> <br />Costs er Acre-Foot <br />1999 Delivery Cost <br />er Acre-Foot <br />$14.28 <br />$ 4.38 <br />$ 7.00 <br />$ 6.37 <br />$ 3.89 <br />$ 7.18 <br /> <br /> <br />. Finally, the JID is located in Sedgwick County (median household income $19,335.) The <br />largest town is Julesburg, with a population of less than 5,000 (median household income <br />$21 ,513.) The CWCB has established MHI has "low income" at $24,000 (80% or less of the <br />1990 State wide average.) Both Segdwick County and the town of Julesburg are classified <br />as "low income" areas. <br /> <br />Refinancing CWCB (Julesburg Reservoir) loan would reduce the loan payment by about $1,000 <br />per year. These funds would be available for future capital expenditures by the District. The <br />ioan wouid payoff in 2026 instead of 2036. <br /> <br />5 <br />