In a recent government meeting, officials discussed the progress of the King Irrigation project, which aims to replace outdated and inefficient irrigation infrastructure. The project, initially authorized in May, involves replacing three miles of unlined concrete canals and two pump stations with a more efficient system. Bids for the project were opened recently, and the board is set to select a contractor soon.
The project has secured significant funding, including a $1 million grant from WaterSmart and a $1.25 million grant from UDAP, reducing the board's financial responsibility to approximately $960,000, which represents 28.4% of the total project cost of $3.38 million. The repayment terms have been adjusted to allow for a 0% interest rate over 25 years, with annual payments estimated at around $38,400.
Economic analyses indicate a benefit-cost ratio of 1.72, with an estimated annual net increase in crop income of $367,000. The projected annual net benefit for shareholders is approximately $86,500. Board members expressed confidence in the affordability of the repayment plan, estimating costs at about $2.80 per acre annually.
Additionally, discussions touched on the anticipated water savings from the project, with a feasibility report projecting a savings of 567 acre-feet. The meeting concluded with a motion to proceed with the project, reflecting a commitment to enhancing irrigation efficiency and supporting local agricultural productivity.