BOARD02151

• Board Meeting Date: 5/19/2003
• Description: CF Section - Springdale Ditch Company
• Board Meetings - Doc Type: Memo

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Sprlngdale Ditch Company
May 19-20, 2003

Agenda Item 18b

Selected Alternative 3 consists of the following:

· Two new recharge ponds with small earthen dams will be constructed on existing
irrigated farm ground.

· An existing unused recharge pond will have a small pumping station installed in the ditch
to lift water into it.

· Two wells will be drilled next to the riverbank and piped backed to the ditch. This will be
done to provide water during times in the winter when the river freezes.

· One augmentation well will be drilled, with a 1,1 OO-foot pipeline extending to the river.
This will provide a way to get water directly to the river to satisfy a senior calling water
right.

· All of the above features, as well as the end of the ditch itself, will be equipped with
proper measuring devices.

The implementation schedule calls for completion of financing arrangements and final design in
May 2003. Construction would be completed and the project operational by June 28, 2003.

Financial Analvsis
The total estimated cost of the project is $135,000 (including engineering costs), and water is
used for agricultural purposes. Staff is recommending a Small Project loan in maximum amount
of $121,500 (90% of the total project costs.) The recommended loan terms are 30 years at
2.75% or 20 years at 2.5%, at the borrower's option.

Table 1 is a summary of the financial aspects of the project with a $121,500 CWCS Loan. The
annual payment would be $6,600 (including the 10% reserve requirement) at the loan terms of
2.75% for 30 years. This represents $0.59 per acre-foot, based on expected annual diversions
of 11,147 acre-feet. The Company's cost share will come from a one-time special assessment
of the shareholders.

Table 1. Financial Summary

Pro'ect Cost
Number of Shareholders
Number of Shares of Stock
CWCS Loan Amount
CWCS Loan Pa ment includes 10% reserve
Current assessment er share
New assessment er share
Annual Loan Cost er acre-foot

$135,000
52
831.5
$121,5000
$6,600
$40
$48
$0.59

Credit worthiness: The SDC has no existing debt. Table 2 shows the Financial Ratios for the
SDC and indicates, with the exception of Cash Reserves, average to strong ability to repay a
$121,500 CWCS loan with the project in place.

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