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I I I I I I I I I, I I I I I I I I I ,I A sales rate of approximately 10 acre-feet of augmentation water per year has been projected. This projected rate of sales is conservative based on the District's past annual water sales experience as shown in Figure 2-1. The trend based on past increases in sales indicates that sales are likely to exceed 30 acre-feet per year. In accordance with CWCB policies, only 10% of the revenues from the sale of 10 acre-feet per year of augmentation water have been included in Table 4-1. During the first fours years of the projected CWCB loan repayment period, sale of37 acre-feet of augmentation water in the District's current inventory is planned. It is anticipated that up to four years may be needed to obtain approval of a decree to permit sale of the Weaver water. The water sales projections after the first four years of the loan contract are based on an assumed conservative yield of 141 acre-feet per year. With projected water sales of ::1::10 acre-feet per year, the acquired water rights would be sold within ::1::14 years. In the projection of water sales income, it has been assumed the District would increase the charge for augmentation water from the new rate of $17,500 per acre-foot costto $20,000 per acre-foot for water purchase with the CWCB loan. This increased project water cost is based on anticipated inflation costs. Annual Fees As indicated in the "Net Water Sales" section, projected water sales are::l::lO acre-feet per year. The annual fees are slightly variable, but using the fee formula for a quantity of water of 1 acre-foot or more (see page B2) the additional annual fee would be ::1::$230 per acre-foot sold during the first five years. To reflect anticipated inflation, an increase of 25% was assumed at the end of each subsequent five-year period. An average annual increase in the fee rate of 3 '12% per year was project after 18 years. Facility Maintenance The "Facility Maintenance" category of expense has included primarily the costs associated with maintenance of the District's interest (one-half interest) in the Pine River Weminuche Pass Ditch. With the District's proposed purchase of an additional one-third (1/3) interest in the Ditch water rights, the "Facility Maintenance" category was increased by approximately one-third over the average during the last four years plus a 3'12% inflation rate thereafter. This estimate is reasonable based on the District's experience coordinating all operation, repair, and improvement of the Ditch for the last ::I:: 1 0 years. Storage Costs Cost to store augmentation water in upstream reservoirs is $75 per acre-feet/year. The District Board has adopted a policy requiring average storage to be equal to one year of total obligations. Projected water sales are 10 acre-feet/year, therefore and annual increase in storage of 10 acre-feet is a reasonable projection. At $75 per acre-feet per year, increase annual storage costs would be (10 afx $75) = $750. It was further E01662 15 _~ ~ S;~~E ,~~Wl~ ,~~." ~~"~ ",1lC(;JJ~"",:n.kltj ~:$=5) 7r ~ ~.~___ ))(Eil~tlt:~" t~lt:.