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<br />.: <br /> <br />Johnson and Edwards Ditch Company <br />November 19-21, 2003 <br /> <br />Agenda Item Be <br />(Updated November 21 , 2003) <br /> <br />augmentation water is available. The cost of this alternative is $147,222, and it is the preferred <br />alternative. <br /> <br />Selected Alternative 3 consists of the following: <br /> <br />. Construct two new recharge ponds with small earthen dams, on non-irrigated farm <br />ground. <br /> <br />. Drill a 3,000 GPM recharge well within 100 feet of the South Platte River. <br /> <br />. Construct a 15-inch diameter pipeline between the recharge well and the ditch. This <br />pipeline will be 2,400 feet in length. <br /> <br />. Purchase one share of Jackson Lake Reservoir water (net yield 6 acre-feet.) <br /> <br />. Install measuring devices on all features of the project. <br /> <br />The implementation schedule calls for completion of financing arrangements and final design in <br />Fall 2003. Construction would be completed in Fall-Winter 2003. <br /> <br />Financial Analvsis <br />The total estimated cost of the project is $147,222 (including engineering costs), and water is <br />used for agricultural purposes. Staff is recommending a Small Project loan in maximum amount <br />of $132,500 (90% of the total project costs.) The recommended loan terms are 30 years at <br />2.5%,20 years at 2.25%, or 10 years 2%, at the borrower's option. <br /> <br />Table 1 is a summary of the financial aspects of the project with a $132,500 CWCS Loan. The <br />annual payment would be $6,964 (including the 10% reserve requirem~nt) at the loan terms of <br />2. 5% for 30 years. This represents $0.78 per acre-foot, based on expected annual diversions <br />of 8,900 acre-feet. The Company's cost share will come from a one-time special assessment of <br />the shareholders. <br /> <br />Table 1. Financial Summary <br /> <br /> <br />$147,222 <br />7 <br />1,500 <br />$132,500 <br />$6,964 <br />$7 <br />$12 <br />$18 <br />$0.78 <br /> <br />Credit worthiness: The JEDC has no existing debt. . Table 2 shows the Financial Ratios for <br />the JEDC and indicates, with the exception of Cash Reserves, average to strong ability to repay <br />a $132,500 CWCS loan with the project in place. (Note: Shareholders of the JEDC previously <br />were members of GASP under which they would now pay a total of $25,000 per year to <br />augment their wells. These GASP dues can now be used to pay assessments of the JEDC.) <br /> <br />3 <br />