PROJC02275 ‎(2)‎

• Contract/PO #: C150166
• Contractor Name: East Fork Mutual Irrigation Company
• Contract Type: Loan
• Water District: 50
• County: Grand
• Loan Projects - Doc Type: Feasibility Study

r~
u
The East Fork Mutual Irrigation Co. will be the lead for the fmancing, 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.
Economic Analysis
The economic benefit of the project is considerable to the shareholders. Based off recent sales in the area
and averaging price between irrigated meadow and irrigated pasture, property value of the irrigated land is
estimated at $6.4 million. Loss of the ditch water to the property, figuring dry pasture average sales there
would be a loss of $1.95 million to shareholders. Using a value of known costs and estimated costs of this
project at $350,000, the project cost/benefit ratio is $1,950,000/350,000 = 5.57.
~ Financial Analysis
~~~ ~& ~
The EFMIC is applying for a loan from the CWCB in maximum amount of $~5@;6~5 to fund a portion of
the project. The EFMIC will cover any costs that exceed the estimated project cost.
The EFMIC is requesting a 30-year loan from the CWCB. The standard agricultural lending rate would be
2.5%, resulting in annual payments of $11,974. To this would be added $1,197 per year for the first 10
years to fund the emergency reserve account, for a total annual cost of $13,171. /~Y~N°fE~ ~~ ~rv~i~
7~/d ~~r~'fT
Table 3 is a summary of the fmancial aspects of the proje Annual ass rnen~ will decrease from the
current $202 per share (which is funding a portion of a project), to $14 per share with a Loan of
$250,625. This represents an annual assessment of $2.57 per acre-foot, based on average annual diversions
of 8, 000 acre-feet.
Table 3. Financial Summary
~f~3, a y9
.~
u
Project Cost $35;625
Loan Amount 75% of Project Cost) $~
CWCB Loan Pa ent Amount, includin 10% loan reserve S4-3s~~
Number of Shareholders 7
Number of Shares of Stock 1,000
Current Assessment er Share
Future Assessment er Share '~'
Annual Project Cost per acre-foot
(Avers a annual diversions: 8,000 acre-feet ~~'
~~~ ~~ 7
~~
2~
~~d9
~,
/-G-off
East Fork Ditch Repairs Feasibility Study December 2003 Page 8