C150293 Feasibility Study

• Contract/PO #: C150293
• Contractor Name: North Sterling Irrigation District
• Contract Type: Loan
• Water District: 0
• County: Logan
• Loan Projects - Doc Type: Feasibility Study

Financia! Analysis
The North Ste~iing Irrigation District is applying for a loan from the CWCB in maximum amourrt
of $1,084,005 to accommodate 90% of the estimated $1,204,450 total cost of the project. The
North Sterling Irrigation District will cover any costs that exceed the estimated project cost.
The North Sterling Irrigation District is requesting a 20-year loan from the CWCB. The current
ownership of the North Steriing Imgation District is 100.0% agricultural resulting in a lending rate
of 2.25%. At this rate annual payments would be $67,904. To this would be added $6,790 per
year for the first 10 years to fund the emergency reserve acxount. This would make the NSID
responsible for a total annual cost of $74,694. The above figures are included in the summary
of the financial aspects of the project presented in Table 2. NSID has sufficient cash in resenre
to pay for the 10% of the project cost not covered by the CWCB loan. NSID also has $109,000
contingent expense in the 2009 budget for any unforeseen costs. Taking this into consideration
no increase in levy is necessary at this time, however the 2010 budget will most likely require a
$2.00 increase in the district levy. The cuITent district levy is $12.00 per acre or $7.69lac-ft
based on the average delivery of 1.56 ac~ feet per acre. If the increase of $2.00 per district
acre is enacted, this will result in a district levy of $14.00 or $8.97/ac-ft.
Table 2. Financial Summary
Pro'ect Cost $1,204,450
Loan Amount 90% of Pro'ect Cost $1,084,005
CWCB Loan Pa ment Amount, includin 10% loan rese-ve $74,694
Number of Landowners 144
Number of Acres in the District 40,916.94
Current Assessment er acre $12.00
Future Assessment r acre $14.00
Annual Project Cost per acre-foot
Avera e annual delive : 1.56 acre-feet/acre $1.17
Since 90% of the funding for the project is from the CWCB and the NSID has sufficient
reserves, no other debt service is required for this project. The annual end of year financial
statements for the years 2007 and 2008 for fhe North Sterfing Irrigation District atong with t~e
2009 budget is provided in Appendix E.
Credit worthiness
NS1D has no existing debt. Table 3 shows the Financial Ratios for the NSID and indicates
average to strong ability to repay with the project in place.
North Sterling ~rigation District Page 11 of 13
Dam Crest and Spillway Improvemern Feasibility Study
March 1, 2009