C153445 Feasibility Study - Laserfiche WebLink

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CHAPTER VII ~ PROJECT EVALUATION The purpose of this chapte~ is to establish the capability of Summit to repay the funds. required to perform the work described previously. Repayment capability of agriculture generally requires an indepth evaluation of crops raised, yields, on-fa~m expenses, and estimates of the value of crops. The funds. are not available to accomplish a similar evaluation for Summit. Data is available from the Bureau of Reclamation on repayment ability of agriculture in the Dolores and Animas-LaPlata Projects. Summit lands are at a similar eJ.evation, or a little higher, to lands in those projects and the soils are similar. Reclamation estimated repayment abilities of $19/acre for Dolores and $23/acre for Animas-LaPlata. Animas~LaPlata figure~ were estimated 3 years after Dolores and are more representative because of that. For purposes of this study the values will be averaged and a value of $21/acre used. . The $21/acre is for a full water supply but SUmIllit only has a 50% supply on the average. Again, for purposes of this study, the $21/acre will be multiplied by 50% to estimate the repayment abil- ity;of Summit; the result is $10.50/acre. Actually more than 50% of the production is achieved with a 50% water supply but how much more is subject to speculation. Assuming a direct proportion, will provide conservative results. . Summit has 400 shares of water for about 4000 acres, which on the average is 1 share per 10 acres. Ten acres, or 1 share has a repayment capability of $105 (10 acres x $10.50/acre). As stated in Chapter II the current assessment per share is $90.00 so there is the potential to raise the amount to $105. In 1982 the assess- ment was $102 which also indicates willingness to pay. . In summary, Summit shareholders have the financial capability to pay about $105 per share. No other' purposes, i.e. fish and recreation, will be contributors to repayment of the. repairs. -34-