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<br />DANIELSON & ASSOCIATES, INe. <br />6805 WEST FOURTH A VENUE <br />LAKEWOOD, COLORADO 80226 <br /> <br />MEMORANDUM <br /> <br />TO: Mr. William Green, P.E. <br /> <br />FROM: Jeris A. Danielson <br /> <br />SUBJECT: Attachment in Support of Loan Request by the Purgatoire River Water <br />Conservancy District <br /> <br />DATE: 10 January 1997 <br /> <br />The following information is offered in support of the loan application to the Colorado Water <br />Conservation Board by the Purgatoire River Water Conservancy District (the District). <br /> <br />PURPOSE FOR THE REQUEST <br /> <br />The District is the entity responsible for reimbursement to the United States for repayment <br />of allocable charges accruing from the construction of the Trinidad Project. The original repayment <br />obligation for the irrigation component was $6,435,600 over a 70 year period. The District has <br />repaid $809,592 during the to-year period ending December 31, 1994, leaving a balance due of <br />$5,636,008 over the remaining 60 years. These repayment costs vary from a high of$140,000 per <br />year to a low of $20,000 per year and average $96,000 per year. When combined with the average <br />operations and maintenance costs of $94,000 per year the annual total outlay is between $234,000 <br />and $114,000 or between $24 and $18 per acre-foot of yield from the reservoir when added to the <br />annual ditch assessments. <br />The requested loan would reduce the average annujal; repayment costs from $96,000 to <br />approximately $40,000 resulting in a savings of approximately $56000 or$3 per acre-foot of reservoir <br />yield. This amount of savings could mean the difference between District water users remaining <br />economically viable and going under financially. The additional revenues that are saved might also <br />allow the District to implement certain conservation measures and participate in other activities which <br />will benefit the water users but which are precluded now because the revenues must be repaid to the <br />United States. <br />The current repayment demand is a heavy financial burden on the District and its taxpayers <br />that could be lessened by approval of this request. <br /> <br />BLANKMEMWPD <br /> <br />Page 1 of2 <br />