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' <br /> l _J <br />' <br />' <br />FINANCIAL ANALYSI� <br />The Reservoir Company has the ability to assess shares. Assessments in 2006 are currently <br />$50 per share. With 5()0 shares this generates $25,000 per year. Current field operating costs <br />of the reservoirs is approximately $5,000 per year. Servicing interest is approximately $10,000 <br />per year. Assessment� are varied annually as the need for, and the ability to provide, cash flow <br />dictates. <br />Collateral can be prowided in the form o# any of the reservoirs. Due to the location of the <br />, reservoirs, the values c>f water rights in the Plateau Valley area are dictated by domestic use in <br />the Grand Junction area. Ute Water Conservancy District owns a number of water rights in the <br />Plateau Valley Area, and has systematically bought ranches in the Valley for nearly 30 years to <br />' obtain water rights. Current value of rights is in excess of $2000 per Acre-Foot for existing <br />, <br />Table 3 below shows potential sources of funding. <br />storage water. <br />Table 3 <br />Sources of Funding <br />Entity Construction Capital Percent Participation <br />Loan by Entity <br />CWCB $1,200,000 89.9% <br />Palisade National Bank $135,000 0 % <br />Short Term Loan <br />Bull Creek Res. <br />Company $135,000 10.1 % <br />Assessments <br />Totals $1,335,000 $135,000 100 % <br />The Reservoir Company is requesting a 30-year loan from CWCB. The standard agricultural <br />lending rate is currently 2.5% per annum, resulting in annual payments of $57,333. To this <br />would be added $5,73,3 per year for the first 10 years to fund an emergency reserve account, for <br />a total annual cost of $63,066. This requires an assessment of $126 per share. Table 4 <br />summarizes financial clata. <br />Bull Creek Reservoir, Canal and Power Company <br />Bull Creek Reservoir No. 4, Feasibility Study <br />Nov. 30, 2006 <br />Page 10 of 13 <br />