Laserfiche WebLink
<br />The EA also indicates that the 6-8,000 acre-feet were originally applied to highly saline <br />soils. The new lands to be irrigated consist of soils with much lower salt content and the <br />salinity impacts of return flows are not expected to be significant. <br /> <br />. <br /> <br />A Nationwide 404 Permit may be required for the installation of pipelines. Pipeline <br />routes will be configured to avoid significant wetlands and archeological sites. <br /> <br />Financial Summary <br /> <br />The overall financial condition of the Dolores Water Conservancy District is sound. <br />Total revenues generally exceed total expenditures and the combined balance sheet <br />indicates substantial equity. The Districts' only major long-term debt is repayment to the <br />United States for a portion of the costs of the Dolores Project with a total outstanding <br />balance of about $23 million and relatively small annual payments. The District has <br />substantial financial reserves. <br /> <br />No detailed analyses of the District's financial statements were conducted because of the <br />annuity arrangement described below. <br /> <br />The District is requesting a loan of $7,260,000 for the irrigation project. This represents <br />90 percent of the total project cost of $8,067,000 as escalated for inflation during a four- <br />year construction period. <br /> <br />The District will establish an interest-bearing annuity with a guaranteed payout schedule <br />to pay all of the District's costs during construction, including interest during <br />construction, and to make annual payments on a 30- year loan. The annuity will be an <br />independent account in the District's Water Activity Enterprise Fund. <br /> <br />. <br /> <br />The estimated starting balance required for the annuity under existing market conditions <br />would be about $3,8SS,000. Annual loan payments on $7,260,000 at 3.S0 percent for 30 <br />years would be about $394,7S0. The actual loan amount would be determined at the <br />completion of construction. <br /> <br />Economic Analvsis <br /> <br />An economic analysis of the proposed project is presented in the feasibility study based <br />on estimated costs of the project and on farm budgets developed in the Definite Plan <br />Report for the Dolores Project. The analysis yields a benefit/cost ratio of 1.1 to 1.0 <br />indicating that the proposed project is economically feasible. <br /> <br />The primary crop to be raised in the project area is expected to be alfalfa for which there <br />is a strong market on farms and ranches in Arizona, New Mexico and Texas. The owners <br />of about IS to 20 farms and ranches would realize the primary project benefits. Total <br />incremental income from the project is estimated at about $1.0 million per year, which is <br />expected to benefit the entire project area. Other benefits include the preservation of open <br />space and the agricultural economy of the region. <br /> <br />. <br /> <br />4 <br />