PROJC02434

• Contract/PO #: C150256
• Contractor Name: Bijou Irrigation District
• Contract Type: Loan
• Water District: 1
• County: Morgan
• County: Weld
• Loan Projects - Doc Type: Approval Letter

Bijou Irrigation District
September 18-19, 2007
Agenda Item 18a
Pneumatic Spiflway Gate (Bladder Gate) structure, 7 feet high, and located immediately adjacent to
the ditch intake structure. Sheet piling and pipe piling will be used under the new concrete
structures for stabilization and erosion protection.
The Total Proje~t cost is estimated to be:
1. Engineering $ 14,900
2. Construction 641,000
3. Contingency (10%) 64,100
TOTAL $720,000
If the loan is approved, final design would be completed in July 2008, with start of construction in
August 2008 and completion at the end of September 2008. All easements and rights of way have
been arranged for. The District and the engineer expect that the project will be exempt form
Federal 404 permitting.
Financial Analvsis
The total estimated cost of the project is $720,000, and District water usage is 100% agricultural.
Staff is recommending a maximum loan amount of $648,000 (90% of the estimated project cost) for
30 years at an interest rate of 2.25%. The District will pay the additional 10% ($72,000) of the
project cost from reserve funds. The District will cover any costs that exceed the estimated project
cost.
Table 1 is a summary of the financial aspects of the project. A CWCB Loan of $648,000 would
have an annual payment of $32,931 (including the 10% reserve requirement} at the loan terms of
2.25% for 30 years. The CWCB loan will be repaid from increases in the acreage assessment
from $18.00 per acre to a minimum of $19.72 per acre. The annual loan cost for the project wi!{ be
$2.07 per acre-foot based on an annual delivery of 15,900 acre-feet to District irrigated lands.
Table 1. Financial Summary
Pro~ect Cost $720,000
Number of Irri ators 157
Number of Acres Assessed 19,177
CWCB Loan Amount $648,000
CWCB Loan Pa ment (inciudes 10% reserve $32,931
Current Assessment er acre 2007 $18.00
Re uired Assessment er acre with CWCB loan $19.72
Annual Cost of Loan per AF delivered (15,900 ac-ft. $2.07
Assessment Levy History: 2007 $18/acre 2005 $10/acre
2006 $13/acre 2004 $10facre
Creditworthiness: The District has one existing loan with CWCB, approved in May 2005 for
$672,660 with an increase to $723,950 in May 2007, with an interest rate of 2.5% for 30 years.
The loan was for construction of a new spillway and additional toe drains for Empire Reservoir.
This loan will have an annual loan obligation of $38,047 (including the 10% reserve requirement)
Table 2 shows the Financial Ratios and indicates overall average ability to repay the new $648,000
CWCB loan, and the existing loan, with annual assessment raised from $18.00 to $ 19.72 per acre.
Page 4 of 5