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South Side Irrigation Company Agenda Item 19d <br />January 22-23, 2003 Updated January 24, 2003 <br />Water Riahts <br />The SSIC has rights to divert 56.29 cfs from the Big Thompson River with decree dates of 1883 <br />and 1914. Average annual diversions are 1,590 acre-feet. <br />Proiect Description <br />Two alternatives were analyzed in the feasibility study: <br />1) The no-action alfernative. <br />2) Rehabilitate the ditch ($80,000.) <br />The "no-action alternafive" is not acceptable since it means the Company will not be able to <br />deliver its full water right to the shareholders. Alternative #2, "Rehabilitate the ditch ($80,000)"is <br />the preferred alternative since it guarantees full delivery of water to the shareholders. <br />Selected Alternative 2 consists of the following: <br />Replace hydraulic control structures and check structures. Reline sections of the ditch where <br />the existing lining has failed, clear the ditch right-of-way, and clean the ditch to recover lost <br />carrying capacity. <br />The implementation schedule calls for completion of financing arrangements and final design in <br />Winter-Spring 2003. Construction will be completed in Fall 2003. <br />Financial Analvsis <br />The total estimated cost of the project is $80,000 and 74% of the shares in the SSIC are owned <br />by farmers/ranchers who use the water for agricultural purposes. The CWCB agricultural loan <br />rate would apply #o these shareholders. The remaining 26% of the shares are owned by the <br />City of Loveland, which has a Median Household Income close to the statewide average. The <br />CWCB Municipal Average Income loan rate would apply to these shares. The blended rate for <br />a loan to the SSIC is calculated as follows: <br />Table 1: SSIC Share Ownership and Blended Interest Rate <br />Shareholder Rate Cate o Year 2002 Rate % Shares Rate x%Shares <br />Farmers/Ranchers A ricultural 2.75% 74 2.035 <br />Loveland, City Municipal 4.25% 26 1.105 <br />Avera e income <br />Totals 100 3.14 <br />Blended rate for SSDC 3.1% <br />(Rounded down to <br />nearest .1 % <br />Table 2 is a summary of the financial aspects of the project with a$72,000 CWCB Loan. The <br />annual payment would be $4,093 (including the 10% reserve requirement) at the loan terms of <br />3.1 % for 30 years. This represents $2.57 per acre-foot, based on average annual diversions of <br />1,590 acre-feet. <br />