Financial Analysis

Design and construction costs are estimated at $87 million in today’s dollars (2019) and are projected to be $101 million in five years when construction could begin if the proposed project is constructed. Economic benefits are calculated to be between $107 million and $216 million in today’s dollars. This results in a benefit-to-cost ratio range of 1.22 to 2.46. Grant funding wasn’t considered when calculating the benefit-to-cost ratio (BCR). Should grants be acquired for a portion of this project, the benefit-to-cost ratio would increase. Based on the analysis completed in the Master Plan the proposed project is feasible over the long term. A detailed financial analysis can be found in Chapters 10 and 11 of the Crockett Pressurized Irrigation Master Plan .

In the short-term, water rates would increase to construct the pressure irrigation (PI) system. However, in the long-term, future city utility rate increases would be less than if the project were not constructed. (See graphic)

Cost Comparison

How will this project be funded?

It is anticipated that funding will come from a variety of sources including, but not limited to, grants, low-interest rate loans, cost-share agreements, and utility rates. Funding will be obtained incrementally as the project moves forward. The Master Plan was funded through a combination of grants and cost-share agreements with the irrigation companies and participating cities. Currently, Crockett is seeking additional funding to begin planning and preparing an environmental document.