C150244 feas study

• Contract/PO #: C150244
• Contractor Name: Wood Lake Mutual Water & Irrigation Company
• Contract Type: Loan
• Water District: 0
• County: Weld
• Loan Projects - Doc Type: Feasibility Study

�
u
'
'
C J
'
'
revenue from special assessments and other income sources are shown in column (5). The expenses
for operation and maintenance are shown in column (6).
Column (14) entitled "Income Minus Expenses" is the sum of all revenue and expenses for that year
with the "Cash Balance" (column 15)being the sum of the previous year's "Cash Balance" plus the
current years "Income Minus Expenses". The assessments are established in Table 5 to provided for
a positive cash flow each year (column 14) or a minimum cash balance of $11,500 in column (15).
This is approximately 30% of their normal operation expenses and should be an adequate reserve.
The assessment level in column (1) was set at the amount needed to fund the normal operating
expenses. This was held constant as was the Other Income (5) and Company O&M Expense (6) and
no inflation was considered in this analysis.
As can be seen from Table 5, the added assessments to fund the Angel Lake Project are projected
to be $7.50 in 2007 and $5.50 most of the remaining years until the loan maturity in 2037.
Additional funds to be placed in a certificate of deposit are not included in the analysis in Table 5
, as the current CD for Wood Lake will contain funds greater than the yearly payment of both projects
by the year 2007. The excess amount in the CD is used as income in 2008 and the interest generated
by the CD is used as income from 2008 to the end of the repayment period. In column (8) the CD
' balance is reduced in 2008 due to using the excess as income to help pay for the project. The sum
of the two loans is shown in the CD as constant starting in 2008 with the interest from the CD used
to help fund the loans. In 2030 the CD is used to make the final payment on Wood Lake and the
, remaining $10,062 is then shown in Column (9) for the reserve for Angel Lake with its final payment
made using the CD in 2037.
'
�J
'
�
'
'
'
OPINION OF FEASIBILITY
The selected alternative is technically and financially feasible. There are no significant roadblocks
which would keep the Wood Lake Mutual Water & Irrigation Company from successfully
completing this project.
The Benefit to Cost Ratio is greater than 1.0 and the cost per acre-foot of water is also favorable.
The following summary provides a breakdown of the unit costs and benefit to cost ratio.
Total Project Cost
$10,062 x 30 years + $25,506 = $327,366
Total Cost Per Acre-Foot
$327,366 = 424 A-Ft = $772
Angel Lake Feasibility Study
'
Page 11
'