Laserfiche WebLink
<br />I <br />I <br />I <br />I <br />I- <br />I <br />I <br />I <br />I' <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />b. Fund requirement schedule. It is expected that all of the <br />loan monies will he required during the summer of 1986. <br /> <br />c. 0, M, & R costs have been averaging about $1500 per year. <br />We will plan for $1800 per year for the 20 year repayment <br />period. <br /> <br />d. Emergency operating fund. Approximately 1% of the total <br />construction cost will be set aside in a separate fund for <br />tbe first 10 years of the repayment period. This will. be <br />$854 per year. <br /> <br />8. CHAPTER VII, PROJECT EVALUATION. <br /> <br />If the Bauer No. 1 Reservoir Dam is not repaired, the <br />Colorado State Engineer's restriction of 5 feet below the <br />spillway crest will continue to be imposed. This will result <br />in the loss of 155 acre feet of water annualy. From 4.c.l, <br />the annual production of 709 lbs. of beef per acre, at $0.56 <br />per pound would gross $807,976 from the 2035 irrigated acres. <br />The 155 acre foot loss represents 5% of the 3103 acre feet of <br />project waters. A 5% gross dollar loss would be $40,400. <br /> <br />Assuming a gross profit of 45% (the net profit runs about <br />12%), the gross profit loss would be $18,180. The annual <br />repayment calls for $9900.56 to be paid the first 10 years <br />and $8787.56 for the next 10 years. Total payments would be <br />$186,881 for the 20 year period and total gross profit loss <br />would be $363,600, resulting in a benefit-cost rat~of <br />1.95:1. This seems to be a highly desireable benefit-cost <br />ratio, expecially if the possiblity of further deterioration <br />of the dam and further restrictions from the State Engineer's <br />Office are very likely if the repairs are not made. <br /> <br />9. CHAPTER VIII, FINANCIAL PROGRAM. <br /> <br />The Bauer Lakes Water Company Board of Directors has <br />determined that while an annual assessment of $97.50 per <br />share is certainly not desireable, the savings afforded over <br />a 20 year payout period, as opposed to a 40 year payout <br />period make the $97.50 figure bearable. <br /> <br />The Board assumes that it will be able to fund half of the <br />construction costs with a loan from FmHA, with an interest <br />rate of 11%. Using 5% for half of the needed loan and 11% <br />for the other half, the following is the resultant payout <br />schedule: <br /> <br />(next page) <br /> <br />10 <br />