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I I I I I I I I I I I I I I I I I I I Institutional Considerations Entities that are, or may be, involved in the design, construction, and financing of the project include: Logan Irrigation District; financing and project management. Iliff Irrigation District; financing. Morgan Prewitt Reservoir Company; financing. W.W. Whe~eler and Associates, Inc.; design and construction oversight. Colorado Water Conservation Board (CWCB); financing and construction. The Logan Irrigation District will be the lead for the financing, design, and construction of the project and will be, the entity entering into contracts and agreements with the various entities for the services provided by each. Financial Analysis The Logan Irrigation District is applying for a loan from the CWCB in maximum amount of $303,385 to accommodate 90% of the estimated $337,095 total cost of the project. The Logan Irrigation District, along with cooperating entities, the Iliff Irrigation District, and the Morgan Prewitt Reservoir Company, will cover any costs that exceed the estimated project cost. The Logan Irrigation District is requesting a 20-year loan from the CWCB. The current ownership of the Prewitt Reservoir is 7.1 % high income municipal, 1.0% low income municipal, and 93.9% agricultural resulting in a blended lending rate of 2.35%. At this rate annual payments would be $19,189. To this would be added $1,919 per year for the first 10 years to fund the emergency reserve account. This would make the LID responsible for a total annual cost of $21,108. In actuality this annual payment would be split between the LID, the Iliff Irrigation District, and the Morgan Prewitt Reservoir Company according to their percentage ownership as follows: Logan Irrigation District (54.8%) Iliff Irrigation District (25.8%) Morgan Prewitt Reservoir Co. (19.4%) - $'11,575 - $ 5,447 - $ 4,086 The above figures would be the annual payments for each entity and are reflected in the summary of the financial aspects of the project presented in Table 2. Included in the LID's 2005 operation and maintenance expenses are engineering fees of $22,593, which was the cost associated with the design and approval of the emergency pipe spillway. Since the cost of engineering design is complete and the construction oversight is included in the loan request from the CWCB, the operation and maintenance cost for 2006 will be reduced by this amount. The three members of the Prewitt Operating Committee also have sufficient cash in reserve to pay for the 10% of the project cost not covered by the ewcs loan. In addition, the Logan Irrigation District receives an annual recreation lease payment of $39, 210 from the Colorado Division of Wildlife. Taking all this into consideration no increase in levy is necessary at this time, The current district levy is $2.60 per acre or $3.4 7'/ac-ft based on the average delivery of 0.75 acre feet per acre. Logan Irrigation District Emergency Spillway Feasibility Study March 30, 2006 Page 10 of 12