LPPD000391

• Contract/PO #: C153715
• Contractor Name: Lower Arkansas Water Management Association
• Contract Type: Loan
• Water District: 67
• County: Prowers
• Bill Number: SB 96-124
• Loan Projects - Doc Type: Feasibility Study

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March 1996 Final

estimated in the July 1995 report at $8,000. The costs of retiring the debt from water right
acquisition were figured by assuming the full $3.75 million will be amortized over two
different repayment periods -- 30 years and 40 years -- at three different interest rates -- 2
percent, 3 percent, and 4 percent. The annual payments required to repay the loan are shown
below for these six possibilities:

30 years @ 2 percent
30 years @ 3 percent
30 years @ 4 percent
40 years @ 2 percent
40 years @ 3 percent
40 years @ 4 percent

$167,000
$191,000
$217,000
$137,000
$162,000
$189,000

Thus, the revenue that LAWMA will need to generate from the active, main stem irrigation
wells will range from $226,000 annually ($81,000 + $8,000 + $137,000) with loan
repayment figured using the most-favorable terms to $306,000 ($81,000 + $8,000 +
$217,000) with loan repayment figured using the least-favorable terms. Using 60,547 acre-
feet of annual pumping, LAWMA's charges to its members will have to average $3.73 per
acre-foot of pumping under the most-favorable terms and $5.05 per acre-foot of pumping
under the least-favorable terms. LA WMA will thusly have to increase its dues under any of
the repayment options. Depending on how LA WMA chooses to handle the wet- and dry-year
variations in well pumping, charges in individual years could vary from $2.88 to $4.96 per
acre-foot under the most-favorable terms and from $3.90 to $6.73 per acre-foot under the
least-favorable terms. These ranges were based on 5-year average pumping varying from
45,491 acre-feet (1986-90) to 78,555 acre-feet (1990-94) annually.

The costs to LAWMA's members of energy for pumping were estimated from average
power coefficients measured in 1993 and 1994 and average charges made by the
Southeastern Colorado Power Association (SECPA) and Lamar Light and Power (LLP) in 1994.
The power coefficients determined for LAWMA members in 1993 and 1994 averaged 139
kwh/ac-ft; the range in power coefficients was from 38 to over 649 kwh/ac-ft. The charges
by SECPA and LLP in 1994 averaged 6.6 cents/kwh and 7.8 cents/kwh, respectively. These

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