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)
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.