BOARD00321

• Board Meeting Date: 11/20/2000
• Description: CF Section - West Rhone Lateral Ditch Company
• Board Meetings - Doc Type: Memo

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Julesburg Irrigation District
"November 20-21, 2000

Agenda ltem14b. and 15a.

the lay down gate to regulate the water level in the Peterson Ditch and prevent flooding
damage.

The implementation schedule calls for completion of financing arrangements by December
2000. The JID must approve the project by vote of its shareholders. Engineering design will be
completed by the NRGS in January 2001, and construction is scheduled to be completed by
April 2001.

Financial Analysis
The total estimated cost of the project is $ 145,000, and the water is used by the shareholders
for agricultural purposes. Staff is recommending a 30-year loan from the Small Project Account
in amount of $100,000 (approximately 70 percent of the estimated cost.) The maximum
allowable loan amount from the Small Project account is $1 OOK.

Alternative financing sources: The District actively sought alternative financing. They were
able to obtain a grant to cover project planning and design through the NRGS ($11,000), but
were not able to obtain cost share for construction through that agency. The JID also requested
a $10,000 grant from the Ernest and Lillian Campbell Foundation, but were turned down. The
District was offered a loan from their local bank at terms of 6.9% for 30 years, primarily
because JID collects its assessments through the county,

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a e rOlect un In!:!: ources
Funding Source Grant Loan
Natural resources Conservation Service $11,000
CWCS $100,000
Julesbura Irrigation District $34,000
Total $45,000 $100,000

Table 3 is a summary of the financial aspects of the project. The District will allocate $0.28 of
the current $20.00 per acre assessment to repay the CWCS Small Project Loan of $100,000.
An assessment increase will not be needed. (The annual payment plus 10% reserve
requirement is $6,361.) This represents $0.11 per acre-foot, based on average annual
diversions of 60,000 acre-feet.

Tb13F" '15

a e InanCla ummary
Project Cost $145,000
Loan Amount (90% of Proiect Cost) $100,000
CWCS Loan Payment Amount, including 10% loan reserve $6,361
Number of Shareholders 155
Number of Shares/Bonded Acres 19,133
Current Assessment per Share/Bonded Acre $20,00
Future Assessment per Share $20.00
Annual Project Cost per acre-foot $0.11
(Averaae annual diversions: 60,000 acre-feet)

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