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<br />
<br />NORTH POUDRE IRRIGATION COMPANY
<br />Wellinl!ton. Colorado
<br />Notes to Financial Statements
<br />October 31. 2001
<br />Note 2 - Noles Pavable (Continued)
<br />Swm:l: Current Long-Term Total
<br />Colorado Department of Natural
<br />Resources (Colorado Water
<br />Conservation Board), 5% interest,
<br />payable in 40 annual installments
<br />of$67,203 beginning May I, 1987.
<br />Collateralized by an undivided
<br />one half interest in the No. 15
<br />Reservoir dam structure. 19,841 927,131 946,972
<br />Colorado Department ofNatura1
<br />Resources (Colorado Water
<br />Conservation Board), 5% interest,
<br />payable in 40 annual installments
<br />of$23,574 beginning May I, 1990.
<br />Collateralized by an undivided
<br />one half interest in the Clarks
<br />Lake dam structure. 6,072 343,963 350,035
<br />Colorado Department of Natural
<br />Resources (Colorado Water
<br />Conservation Board), 2% interest,
<br />payable in 40 annual insta1lments
<br />of $64,388 beginning May I, 1996.
<br />Collateralized by the #5 and #6
<br />dam structures. 32,834 1,544,341 1.577,175
<br />ImaJa 106,767 4,585,203 4,691,970
<br />
<br />
<br />NORTH POUDRE IRRIGATION COMPANY
<br />WeUinlrton. Colorado
<br />Notes to Financial Statements
<br />October 31. 2001
<br />
<br />Note 3 - Water Allotment Al!I'eement
<br />
<br />The Company entered into an agreement December 5, 1945, with the Northern Colorado Water
<br />Conservation District for the annual purchase of 40,000 acre feet of water, or any such portion that
<br />may be delivered, at $1.50 per unit. Payment is due May I of every year and is secured by an
<br />irrevocable levy of assessment on the capital stock of the Company. Payments shall continue until
<br />the delivery systern is paid for and thereafter for operating and maintenance charges.
<br />
<br />Note 4 - Oution Al!J'eement - Hallil!8I1 Reservoir
<br />
<br />The Company has entered into an agreement with the City of Fort Collins (the City) that may
<br />result in the sale of the Halligan Reservoir site to the City for $5,363,675. Based on the
<br />agreement, the Company retains the current storage capacity of the reservoir. During the option
<br />period, the City will make payments to the Company totaling $460,000, as the City considers and
<br />works toward possible completion of the sale. If the sale is not completed, one-half of the option
<br />payments or all of the option payments under limited circumstances could be refundable to the
<br />City. The Company has purchased a certificate of deposit representing one-half of the $460,000
<br />option payments received to date and deferred the potential income resulting from the payments.
<br />Should the sale be completed, the full amount of the option payments will be applied toward the
<br />purchase price.
<br />
<br />The Company has granted an extension, as provided in the original agreement, through December
<br />31,2002. The city will make additional annual payments of$188,224 under the same terms as the
<br />original agreement.
<br />
<br />Note 5 - Suoolemental Cash Flow Information
<br />
<br />Amounts paid in cash for interest and income taxes during the periods were as follows:
<br />
<br />2001
<br />
<br />2000
<br />
<br />The following is a summary of the annual debt service requirements:
<br />
<br />Year
<br />2002
<br />2003
<br />2004
<br />2005
<br />2006
<br />2007-2035
<br />TotaB
<br />
<br />Pm:ipal
<br />106,767
<br />110,903
<br />115,261
<br />119,809
<br />124,556
<br />4,114,674
<br />4,691,970
<br />
<br />Interest
<br />182,744
<br />178,608
<br />174,250
<br />169,702
<br />164,955
<br />1,944,082
<br />2,814,341
<br />
<br />8
<br />
<br />18
<br />
<br />Total
<br />289,511
<br />289,511
<br />289,511
<br />289.511
<br />289,511
<br />6,058,756
<br />7,506,311
<br />
<br />Interest
<br />Income Taxes
<br />TotaB
<br />
<br />188,725
<br />
<br />190,627
<br />51,612
<br />242,239
<br />
<br />188,725
<br />
<br />Note 6 - Pension Plan
<br />
<br />The Company sponsors a deferred compensation plan for all full time employees. The Company
<br />matches employee deferrals up to a maximum of3% of compensation. The Company's
<br />contribution to the plan was $3,604 for the year ended October 31, 2001
<br />
<br />9
<br />
<br />19
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