PROJC01874 ‎(2)‎

• Contract/PO #: C150188
• Contractor Name: Bull Creek Reservoir, Canal & Power Company
• Contract Type: Loan
• Water District: 0
• County: Mesa
• Loan Projects - Doc Type: Feasibility Study

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FINANCIAL ANALYSIS

The Reservoir Company has the ability to assess shares. Assessments in 2004 are currently
$30 per share. With 500 shares this generates $15,000 per year. Current operating costs of
the reservoirs is approximately $2500 per year. Assessments are varied annually as the need
for and the ability to provide cash flow dictates.

Collateral can be provided in the form of any of the reservoirs. Due to the location of the
reservoirs, the values of water rights in the Plateau Valley area are dictated by domestic use in
the Grand Junction area. Ute Water Conservancy District owns a number of water rights in the
Plateau Valley Area, and has systematically bought ranches in the Valley for nearly 30 years to
obtain water rights. Current value of rights is in excess of $2000 per Acre-Foot for existing
storage water.

Table 3 below shows potential sources of funding.

Table 3
Sources of Funding

Feasibility Construction Percent
Entity Capital Participation
Study Grant Loan bv Entity
CWCB $5,000 50 % match
CWCB $570,000 90%
Palisade National
Bank 50,000 0%
(Short Term Loan)
Bull Creek Res.
Company 5,000 57,000 10.0%
Assessments
Totals 10,000 ; 5 ?Jl. 0 00 . 57,000 100 %

The Reservoir Company is requesting a 30-year loan from CWCB. The standard agricultural
lending rate is currently 2.5% per annum, resulting in annual payments of $ 27,233. To this
would be added $1,000 per year for the first 10 years to fund an emergency reserve account, for

Bull Creek Reservoir, Canal and Power Company
Bull Creek Reservoirs Nos. 1,2 and 4, Feasibility Study
May 31,2004

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