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<br />. 6. Implementation Schedule <br /> <br />The goal of the board is to start construction in the late fall (mid-November) of <br />1997 after the inigation season has ended. A request for bids will be published during the <br />spring of 1997 following the approval of the required legislation. Construction is expected <br />to take two to three months. <br /> <br />7. Social, Economic, and Physical Impacts <br /> <br />Given the nature of the project, there are no anticipated social, economic, or <br />physical impacts. <br /> <br />8. Permitting <br /> <br />The project falls under the lnigation Exemption of the U. S. Anny COIpS of <br />Engineers. A letter confuming the exemptiol1 is provided in Appendix D. <br /> <br />9. Financial Plan <br /> <br />. <br /> <br />The loan amount requested from the CWCB is seventy-five percent of $326,500, <br />which is $244,875. The remaining twenty-fiVe percent is $81,625. The CWCB loan <br />payment would be paid for by an increase in the annual assessments At a rate of 4% for 30 <br />years, the payment for principle and interest on $244,875 is $14,161.15, or $3.02 per <br />share for 4690 shares. The current assessment on the Buffalo is approximately $5.00 <br />annually per share. The annual assessment would be increased by $3.02 per share, to bring <br />the total to $8.02. <br />Assessments on the other canals in tlte lower Arkansas River area range from about <br />$10.00 to $12.50 per share. Other canals include the Amity, the Fort Lyon, Lamar, and <br />Fort Bent. An annual assessment of $8.02 would still be lower than assessments charged <br />by the other canals which have similar water rights, <br />The additional $81,625, which amounts to about $17.89 per share, would be paid <br />in one of two ways, 1.) Require each share bolder to pay his share of the cost at the time <br />payment is due to the contractor. The amoUIlt due would be based on the number of shares <br />owned. 2.) Obtain a conventional bank loan as a coIporation and adjust annual assessments <br />as needed to cover the annual payment. The loan payment per share would, of course, be <br />subject to tenos. As a rough estimate, at an interest rate of 9% for twenty years, the cost <br />per share would be $1.96, and at 7% for thirty years, the cost would be $1.44 per share, At <br />the most, the total assessment would be increased to just over $10 per share, which is <br />about the same as the other canals in the area, At $1O/share with an average yield of 3.74 <br />acre-feet per share, the total cost of the water would be about $2.67 per acre-foot <br />delivered. <br /> <br />10. Collateral <br /> <br />. The Buffalo has WtuaIly nil cllUateral. The head gate and dam wlluld have tll he <br />the collateral, Such an arrangement would require a vote of the share holders, <br /> <br />13 <br />