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

Table 3. Financial Ratios
Financial Ratio Wlthout the ro"ect With the ro ect
O eratin Ratio revenue/ex ense 108%* avera e 108%'~ avera e
Debit Service Coverage Ratio
revenues-ex enses /debt service No debt (strong) 169%"` (stong}
Cash Reserves to Current Ex nse 135% stron 120%** avera e
Annual Cost per acre-foot
1.56 acre-feet er acre $1.17 (strong) $1.17 (strong)
"revenue and expense used was for 2008 less a$201,000 revenue from pipeline company settfemerrt
"revenue with project is 2008 revenue with a$2.00/acre increase in district levy
Alternative Financing Considerations
The NSID has not investigated any altemative financing sourc.es.
Collateral
As security for the CWCB loan the NSID can pledge assessment income, water rights, and
land.
Economic Analysis
The economic benefit of the project is considerable. The value of the water rights available in
the North Sterling Reservoir for irrigation and augmentation based on the difference in value of
irrigated land at $2,000 per ac~e and dry farm land at $500 is $1,500 per acre and with
4Q,916.94 district acres the total value of the water is estimated to be $61,375,410. As stated
above the average delivery is 1.56 acre feeUacre therefore the water has a value of $961/acre
foot. Without the spillway in place the percentage reduction in storage is unknown, but if it is
assumed the North Sterling would be reduced by an additional 10%, this results in a loss of over
6 million dollars in available water rights. The safety to the community of 11iff and surrounding
area with the addition of an adequate spillway is also considerable. Using an estimated total
project cost of $1,204,450 (to cover construction of the dam crest and spillway improvement and
all appurtenances, construction supervision, and up to $157,100 in cost overrun), the project
cost/benefrt ratio not including the safety consideration is $6/ $1.2 or 5.
Social and Physical Impacts
The project will have no sign~cant social impacts, since it will assure the continued operatiort of
a currently existing reservoir system. The project will have minor physical impacts during
construction and may intertere temporarily with the use of the North Sterling State Park south
boat ramp. The improved spillway structure is in the location of the current spillway.
North Sterling Irrigation District Page 12 of 13
Dam Crest and Spillway Improvement Feasibility Study
March 1, 2009