BOARD02013

• Board Meeting Date: 11/20/2000
• Description: CF Section - Julesburg Irrigation District - Peterson Ditch Control Structures and Request for Loan Refinancing
• Board Meetings - Doc Type: Memo

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Julesburg Irrigation District
November 20,21, 2000

Agenda Item 14b, and 15a,

. In 1997 the Harmony #1 diversion washed out during a flood, The diversion was rebuilt at a
cost of $700K, of which $51 OK came from an emergency loan from the CWCS. The remaining
$190K plus $1 OK for interest during construction, was paid by the JID. The annual payment on
the CWCS loan is $28,630 with first payment due February 1,2001. Failure"of the Harmony
#1 diversion constitutes a "significant and unexpected financial difficulty,"

. In 2000 the District evaluated the Peterson-Lodgepole drop structure with technical assistance
from the NRCS, The structure is in poor condition and could fail during a flood. The repair cost
is $145K, of which $34K will be paid up-front by the District. If approved, the District will also
be liable for a loan payment of about $6,300 for 30 years. This adds to the financial difficulty
associated with the Harmony #1 diversion.

. The JID has performed a preliminary evaluation of the Peterson Ditch diversion on the South
Platte River, The Peterson Ditch is a critical structure for water management on the lower
South Platte River. It is already being used for augmentation, and is being considered as a
way to deliver water to a future "sustainment" reservoir. The Peterson diversion was
originally constructed over 100 years ago, and is at the end of its useful life. The District needs
to replace the Peterson Diversion before it fails, creating an emergency situation.
Replacement is tentatively scheduled within the next 10 years, at a cost of $1 million. With a
CWCB loan, the District will need to fund approximately $120K, and then have a loan payment
of approximately $50K per year. This will add to the financial difficulty of the District.

. The JID has identified 7 check structures that need replacement over the next 10 years at a
total cost of approximately $30K. The District will fund this work itself, which will add to the
financial difficulty of the District.

. There is a financial hardship based on the cost per acre-foot delivered to JID shareholders,
when compared to other irrigation districts and companies on the South Platte. It costs the
JID about twice the area average to deliver water to its shareholder's headgates.

Table 6: ComDarison of Water Deliverv Costs Der Acre-Foot
District/Company 1999 Delivery Cost
Der Acre-Foot
Julesbura Irrioation District $14.28
Riverside Irriaation District $4.38
Biiou Irriaation District (Emoire Reservoir) $ 7.00
Jackson Lake Reservoir and Irriaation Co. $6.37
North Sterlina Irriaation Comoanv $ 3.89
Averaae $ 7.18

. Finally, the JID is located in Sedgwick County (median household income $19,335.) The
largest town is Julesburg, with a population of less than 5,000 (median household income
$21,513,) The CWCB has established MHI has "low income" at $24,000 (80% or less of the
1990 State wide average.) Both Segdwick County and the town of Julesburg are classified
as "low income" areas.

Refinancing CWCB (Julesburg Reservoir) loan would reduce the loan payment by about $1 ,000
per year. These funds would be available for future capital expenditures by the District. The
loan would payoff in 2026 instead of 2036.

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