C150296 Feasibility Study

• Contract/PO #: CT2015-058
• Contract/PO #: C150296
• Contractor Name: Gypsum, Town of
• Contract Type: Loan
• Water District: 0
• County: Eagle
• Loan Projects - Doc Type: Feasibility Study

Gypsum Loan Feasibility Outline
CWCB Water Project Loan Program
Page 31 of 33
contributing $500,000 from its existing water enterprise fund toward the total
project cost. Because LEDE Reservoir and LEDE Ditch are senior rights, decreed
for irrigation uses, and because Gypsum's plans are required to include up to 100
acre-feet of irrigation water to Gypsum Valley Ranch, in addition to other
irrigation in the town, Gypsum seeks a loan interest rate of 2.5% for the project,
because the senior water rights for LEDE Ditch and LEDE Reservoir are only
decreed for irrigation uses. However, over time, the project portion tha.t is for
agricultural use is estimated at 25%, and project portion for future municipal use
is estimated at 75%. For purposes of this feasibility analysis, both the 2.5% rate
and the 4% rate are used. An emergency reserve account of 10% is added, for a
total annual cost of $16,005.
b. Financin~ Sources. A Financial Summary is shown below in the below Table 1.
Table 1
Pro'ect Cost for LEDE Ditch & LEDE Reservoir Alternative 3 $3,162,000
Loan Amount (84% of roject cost) $2,662,000
Contribution from G sum Ente rise $500,000
CWCB Loan Payment Amount, including 10% loan reserve (2.5%) $138,839
CWCB Loan Pa ent Amount, includin 10% loan reserve (4.0%) $167,757
Total Estimated Annual Revenue over 30 year eriod $1,500,000
Annual Project Cost Per Acre Foot (685 AF) at 2.5% rate $202.68/AF
Total Pro'ect Cost Per Acre Foot (685 AF) $4,616.00/AF
c. Revenue and Expenditure Projections. A summary of Gypsum's revenues and
expenditures in total over the thirty year loan period follows:
Table 2
Total Gypsum's CWCB CWCB Payments LEDE CWRPDA
Estimated Estimated Loan (LEDE Reserve on debt Reservoir Bonds
Revenue Water Request) Fund service Purchase
OMR&R Accumula existing in Payments
ted 2009
(Norgaard
)
$58,571,592 $48,528,684 $2,662,000 $838,783 $421,619 $1,185,000 $363,869
A detailed schedule of estimated annual revenues and annual expenditures for the
entire period of debt retirement is attached as Appendix 10. This analysis also
includes the expected loan, annual payback, and 10% reserve fund. However, the
CWRPDA bond amount is in addition to the analysis in Appendix 10.
d. Loan Repavment Sources. Generally, Gypsum collects water service fees on a
monthly basis, under a graduated rate fee, so that the monthly service fee
increases as water use increases. In addition, as an individual water user comes
on line, Gypsum's Town Code requires tap fees per EQR. Prior to tap