C153705 Feasibility Study - Laserfiche WebLink

Home Browse Search

I I I I I I I I I I I I I I I I I I I ..:;:_ -r 8.0 FINANCIAL EVALUATION 8.1 GENERAL Several different concepts for rehabilitation of Beaver Reservoir were evaluated and construction costs were developed. Each of the options would allow continued operation of the dam through the length of the loan period. A financial evaluation was also conducted to compare the costs of rehabilitation for each of the options to the value of the Beaver Reservoir water. The value of Beaver Reservoir water may be estimated by evaluating the potential economic effects of eliminating, without replacement, the water from BRe. Economic effects are reflected in the difference of the value of .irrigated versus dry land crop acreage. A summary of this analysisispresen!ed in Table 8-1. Table 8-1 indicates that the loss of BRC water would amount to an annual loss of revenue of about $221,000 and a loss of profit of about $44,200 (assuming avera.ge prices) to those served by BRC water. This analysis is believed to be conservative as it does not address higher value crops such as fruit and vegetables. The projected annual revenue loss of $221,000 represents an average value of $138 per share per year in the BRCand about $138 per acre-foot per year of Beaver Reservoir water. ~ ...- 8.2 FINANCIAL EVALUATION The BRC i:j]~s to make loan payments through their annual assessments. Several financial programs. for the recommended rehabilitation alternatives were developed to evaluate the assessments needed for the different options and the total project costs as compared to the value of the water. The financial programs for the rehabilitation alternative are shown in Tables 8-2 to 8-7. Operating and maintenance expenses were estimated from 1990 and 1992 data, which 23Q67/Rl.8 09-03.93(3:29pm)/RPT 8-1