Laserfiche WebLink
<br />Lower South Platte Water Conservancy District Agenda Item 7b, <br />May 21-22, 2001 Updated June 6,2001 <br /> <br />The implementation schedule calls for completion of financing arrangements by May 2001. <br />Engineering design will also be completed in May 2001, and construction is scheduled to be <br />completed by July 2001, <br /> <br />Financial Analvsis <br />The total estimated cost of the project is $ 120,000, and the water use is agricultural. Staff is <br />recommending a 1 O-year loan from the Small Project Account in amount of $100,000 <br />(approximately 83 percent of the estimated cost.) The maximum allowable loan amount from the <br />Small Project Account is $100K. <br /> <br />Alternative financing sources: The LSPWCD actively sought alternative financing. They were <br />able to obtain a grant of in-kind services from NCWCD to cover project planning and <br />engineering, and a donation of project supplies from SPLRG (total combined value $20,000). <br />The LSPWCD approached the Sank of Colorado and SPLRG, both of which could provide <br />construction financing, but not long-term financing for the project. <br /> <br />Table 2 is a summary of the financial aspects of the project. The LSPWCD will construct and <br />operate the project, and will sell the recharge credits to GASP under contract price covering all <br />O&M and financing costs. No District mill levy increase will be needed, and the assessment rate <br />for existing recharge programs run by the Enterprise will remain the same. The CWCS loan will <br />have an annual payment (including the 10% reserve requirement) of $12,895. O&M costs are <br />estimated at $7.00 per acre-foot. This represents an annual project cost of $15.60 per acre-foot, <br />based on average annual project diversions of 1,500 acre-feet. <br /> <br />Table 2. Financial Summary (LSPWCD) <br /> <br />Proiect Cost $120,000 <br />Loan Amount (83% of Proiect Cost) $100,000 <br />CWCS Loan Payment Amount, including 10% loan reserve $12,895 <br />Number of Acres (District) 375,000 <br />Current mill levy (District) 0.5 mill <br />Future mill levy (District) 0.5 mill <br />Annual Project Cost per acre-foot $15.60 <br />(Averaqe annual diversions: 1,500 acre-feet) <br /> <br />Credit worthiness: LSPWCD has no existing long-term debt. Short-term obligations of the <br />District and its Enterprise are paid as agreed with service providers. <br /> <br />Table 3 shows the Financial Ratios for the LSPWCD and indicates average to strong ability to <br />repay with the project in place, <br /> <br />3 <br />