C150268 Feasibility Study - Laserfiche WebLink

Home Browse Search

The assessment level in column (l) was set at the amount needed to fund the normal operating expenses. This was held constant as was the Other Income (4) and Company O&M Expense (5) and no inflation was considered in this analysis. As can be seen from Table 8, the added assessments to fund the Rist-Benson Reservoir Project are projected to be $48.29 in 2009, $25.99 from 2010 through 2019, and $23.63 most of the remaining years until the loan maturity in 2039. LCIRC proposes to raise the assessments in 2009 to generate the 10% of the project required by the CWCB for the loan column (7). Additional funds to be placed in a certificate of deposit are to be generated by raising the assessments between 2010 and 2019 column (8). ALTERNATIVE FINANCING CONSIDERATIONS The LICRC has investigated alternative financing with the Bank of Colorado, Windsor, Colorado. The bank has indicated they would consider a loan for the LICRC after review of their financial status. Included in Appendix F is a letter from the bank stating their position. OPINION OF FEASIBILITY The selected alternative is technically and financially feasible. There are no significant roadblocks which would keep the Louden Irrigation Canal and Reservoir Company from successfully completing this project. The Benefit to Cost Ratio is greater than 1.0 and the cost per acre-foot of water is also favorable. The following summary provides a breakdown of the unit costs and benefit to cost ratio. Total Project Cost $ 14,179 x 30 years + $ 28,976= $454,346 Total Cost Per Acre-Foot $454,346 + 491.4 A-Ft = $925 Cost Per Acre-foot Of Water Delivered For An Average Year $454,346 + 491.4 A-Ft + 30 years = $30.82 Cost per Share of Stock Per Year $454,346 + 600 shares + 30 years = $25.24 Rist-Benson Feasibility Study Page 16