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<br />I <br /> <br />I <br />I <br /> <br />I <br /> <br />I <br /> <br />I <br />I <br /> <br />I <br /> <br />I <br />I <br /> <br />I <br /> <br />I <br /> <br />I <br />I <br /> <br />I <br /> <br />I <br />I <br /> <br />I <br />I <br /> <br />- <br /> <br />CHAPTER 8 <br />FINANCIAL PROGRAM <br /> <br />8.1 Revenues: <br /> <br />Project costs will be repaid through water sales to private contractors. <br /> <br /> <br />Contracts will be executed on the basis of a fixed annual charge per acre-foot, <br /> <br /> <br />payable whether the water is used or not. Two hundred forty acre-feet of <br /> <br /> <br />capacity will be allocated to irrigation and 10 acre-feet for residential use. <br /> <br /> <br />The annual charge will be $25.00 per acre-foot for irrigation water and $50.00 <br /> <br /> <br />per residence for augmentation releases. The analysis presented in Section 7.2 <br /> <br /> <br />shows that irrigators can afford to pay $25.00 per acre-foot for supplemental <br /> <br /> <br />irrigation water delivered at the right time. <br /> <br />8.2 Loan Repayment: <br /> <br />If construction is completed in 1989, the first payment on borrowed money <br /> <br /> <br />will be made in June, 1990. Fifty percent ($36,500.00) of the estimated <br /> <br /> <br />construction cost is herewith requested from the Colorado Water Conservation <br /> <br /> <br />Board (CWCB) to be repaid over a 40-year period at 5% interest. <br /> <br />The balance of the construction cost will be provided from the capital <br /> <br /> <br />reserve fund accumulated by the District over a period of years. This fund will <br /> <br /> <br />be reimbursed by revenues from annual sales above those required for repayment <br /> <br /> <br />of CWCB loan. An interest rate of 7% will be charged on the unpaid balance of <br /> <br /> <br />this loan. If for any reason a shortfall in payments should occur, the local <br /> <br />District will be liable for the CWCB payment. <br /> <br />Table 8.1 presents a 40-year amortization schedule. Interest during <br /> <br /> <br />construction has been added to the initial balance of both the CWCB and District <br /> <br /> <br />loans. It has been assumed that during the first operating season irrigation <br /> <br /> <br />revenue would be half the full contract amount. In order to make the CWCB <br /> <br /> <br />payment the first year, the District will have to advance additional funds. In <br /> <br /> <br />subsequent years the District begins to .realize a surplus. <br /> <br />~ <br /> <br />-26- <br />