PROJ00402

• Contract/PO #: C153517
• Contractor Name: Lone Cabin Ditch and Reservoir Company
• Contract Type: Loan
• Water District: 40
• County: Delta
• Bill Number: SB 87-15
• Loan Projects - Doc Type: Feasibility Study

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SECTION 03300

CHAPTER 6

PROJECT EVALUATION

Funds borrowed for constructi~n of the repairs and/or replacement
of structures will have to be repaid out of increased service
charges that will be paid by members of the Lone Cabin Ditch and
Reservoir Company. Distributed among 700 acres of irrigable land.

Repayment of a $50,000.00 loan at 5% for 40 years would require
an annual payment of $2,913.91. On a per acre basis, the cost
increase that will be assumed by the stockholders will be $4.16
per acre per year.

There will not be any increase in farm income or reduction in
project operating expenses to offset the increase in cost to each
shareholder for repayment of the loan. Work required has been
mandated by the State ENgineers Office, and by need to accomplish
replacement of structures that are no longer serviceable.
Construction of the improvements does not increase the quantity
of water available to the Owner. The construction simply enables
the Owner to continue in operation.

No other source of funding is available to the Owner to
accomplish the required work.

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