C150277 Feasibility Study

• Contract/PO #: C150277
• Contractor Name: New Salida Ditch Company
• Contract Type: Loan
• Water District: 0
• County: Chaffee
• Loan Projects - Doc Type: Feasibility Study

Financial Analysis
The total estimated cost of this project is $401,883.90. The New Salida Ditch is applying
for a loan from the CWCB to finance all phases of the project with an estimated project
cost of $401,883.90. Phase 3 would be undertaken after evaluating the potential for
utilization of a 36 inch diameter pipe and the related reduction in cost prior to continuing
with that phase. Table 1 shows the various phases with related costs:
Table 1 Sources of Fundin
Phase Loan Amount CWCB
Partici ation NSDC
1 $113,777 0 % '~
2 $119,717 % / %
3 $168,390 '~ ° o
Total $401,883 % ~'
The New Salida Ditch Company will cover any costs that exceed the estimated project
cost.
The New Salida Ditch Company is requesting a 30 year loan from CWCB. The standard
agricultural lending rate would be 2.5 percent, resulting in annual payments of
$17,468.46. Table 2 is a summary of the financial aspects of the project. Except for the
abnormal legal and remediation expenditures incurred as a result of activities in response
to resolution of the maintenance activities undertaken in 2005, annual assessments for
normal maintenance have historically averaged $50.00 per share. Based on a baseline
annual assessment of $50.00 per share, assessments would increase less than $44.00 per
share to a total of $94.00 per share annually after the year of construction (2009). Based
on annual diversions of 7114 acre feet the per acre foot cost of the annual assessment
increase is $2.46 per acre foot.
Table 2 Financial Summ
Project Cost $401,883
Loan Amount(90 % of Project Cost) $362,000
CWCB 1% Service Fee $3,620
Total Loan Amount $365,620
CWCB Loan Pa ent $17,500
Number of Shareholders 14
Number of Shares of Stock 400
Current Assessment er Share $181.35
Estimated total Assessment per share
(2008) $225.00
T ical Assessment er Share $50.00
Future Assessment er Share $94.00
Annual Project Cost per Acre Foot
(Average annual diversions: 7114 acre foot) $2.46
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