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funding agencies involved. The total annual cost associated with Alternative <br />No. 5, Phase 1, based on the assumed financing strategy is E1,247,000. <br />It should be noted that the total annual cost can be reduced somewhat by <br />eliminating the need to include interest during construction, debt service <br />reserve funds, and financing expenses. This can be accomplished by <br />establishing a fund with relatively small annual payments (approximately <br />E39,000 per year over 15 years) made into the fund during the permitting and <br />final design phase of the project. Considering the lead time required to <br />implement a project such as this, the project sponsors may be able to <br />accumulate sufficient funds to cover these up-front costs. If this were done, <br />the total annual project cost could be reduced by about E70,000 to $1,177,000 <br />per year. <br />7.3 SOURCES AND AMOUNT OF DIRECT PROJECT INCOME <br />Alternative No. 5, if implemented, will generate direct income from the <br />sale of agricultural water and from campground user fees. The average annual <br />sale of agricultural water has been estimated to be 7800 af, while annual <br />campground use has been estimated at approximately 8000 campsite days. The <br />resulting direct project income is as follows: <br />7800 af per year of agricultural <br />water at S10 per af = <br />8000 campsite-days at S8 = <br />Total <br />578,000 per year <br />64.000 oer vear <br />3142,000 per year <br />The direct agricultural benefits are the result of the S10 per af charge <br />for the water. Quantifying increased agricultural production and including <br />the market value of the crops would constitute a double counting of the direct <br />benefits and, therefore, has not been included in the study. <br />7-2 <br />