Prepared Statement to the Landowners Riverside Irrigation District

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There is also the possibility, as a last resort, to sell or lease perpetually the Bich Thompson water for domestic purposes, the value of , ahica is many times the value for irrigation water. Based on offers to date, this can be made to cover the additional cost for outright sale or to amortize by lease money over a period of 30 years. Where is the iiloney coming from? It is possible to obtain by congressional action a small project loan repayable in 40 years, interest free. This type of loan appears at first glance the tray to go, but there are many re- strictions and approvals required by many other federal govern ment agencies. A great deal more of paper work, ties in with social asperations, political considerations, time delays, etc., so that the net cost in the end to the user might approach and could exceed alas cost by conventional tax exempt bond sale to say nothing of the many annoyances covered along the tray. Also, Without a charge, no single owner of over 160 acres could be served the additional acres without paying interest, any nego- tiation :with a municipality for exchance of Big Thompson .rater might be construed as to that portion bearing interest. Conventional Financing by issuing Bonds also carries the cost or legality to issue an% the necessary investigation to ascertain by 'he bond buyers that the Distract did have the ability to repay the principal and interest. As collateral to offer there would be the earning poser of the better service and increased supplies of grater, the earning power of the a dditional lands as far as the water supplied to those lands are concerned. The type of lease for recreation purposes and the stability if a lease was made. If cash was paid for This portion (then, of course, the bond issue would be less), and lastly, the value of the Big Thompson water. Before the proposal for the big cquestion comes up, do we? or don't trre ?, much exploration work of coring, blocking out the suitable material for •the dam, all of which seem to be nearby, so that physically the dam buileing itself is really simple, but the method of how and of it can be financed must be worked out. To do this �rork is going to cost some 111oney. You have indicated that you were grilling to spend some for this purpose. The Board of Directors have optioned some 2.33 acres of land. They spent $20,000.00 plus for this item so that the investigation could proceed. �lithout a site first, many times that risk money might have to be spent. Before the big ciuestion asked as full a disclosure oZ all facts as is possible will be brouggat before you. You are en- couraged to do all the thinking you can for yourself and to question not only the management or Directors, but all others CLia are competent to give you unbiased opinions. If it can be put together and you then Zcel it is wort zwiiile, the actual cons truction can be done in a years time In fact, ae practically have the equi1xient needed locally and -•re certainly have the Manpower in our midst to coo the job. Or we could go to one big contract and bring it in : zw.i the outside. -7-