PROJ02108

• Contract/PO #: FS0052FX
• Contractor Name: Northern Colorado Water Association
• Contract Type: Miscellaneous
• Water District: 0
• Loan Projects - Doc Type: Feasibility Study

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NORTHERN COLORADO WATER ASSOCIATION
Feasibility of Asset Acquisition
-2-

Social, Economic and Physical Impacts

The project will have no significant social impacts.

The project will not have an immediate positive economic
impact/however, will give the Association additional water
rights which will be needed for future expansions.

The project will have no significant physical impacts.

Permitting

No permitting will be required.

Finance Plan

The financial condition of the Association is solid at the
present time. The Association has existing obligations of
current annual operating expenses of approximately $450,000.
The Association has five existing loans with the USDA-FMHA
which require annual payments of $1,175, $2,645, $14,690,
$48,238 and $40,796 for a combined total of $107,544. The
loans carry a 5% interest rate. The loan summaries as of
November 30, 1996 are as follows:

#9103
#9104
#9105
#9106
#9107

Current Long-Term Total
Liabilities Liabilities Liabilities
$ 688 $ 9,046 $ 9,743
1,476 21,807 23,283
6,650 154,141 160,791
36,678 194,517 231,195
10,121 603,371 613,492
$ 55,613 $982,882 $1,038,495
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USDA-FHMA Loans:

Totals

In order to secure the payment of the principal and interest
of the Government Notes Payable, the Association negotiated
security instruments which encumber the Association's assets,
both real and personal including an assignment and pledge of
revenues.

Source of financing for the project will corne from existing
excess working capital and existing excess cash flows above
current operating needs and existing debt service
requirements, as well as from future expansion as the
population of the service area requires.