C150059 Feasibility Study

• Contract/PO #: C150059
• Contractor Name: Kenosha Trout Club
• Contract Type: Loan
• Water District: 23
• County: Park
• Loan Projects - Doc Type: Feasibility Study

Institutional Considerations
Entities that are, or may be, involved in the management, design, construction, and financing of
the project include:
Kenosha Trout Club (KTC); Project management and construction.
Colorado State Engineer — Dam Safety; Construction Improvement Review.
Colorado State Engineer — Water Rights; Augmentation Plan Approval.
Colorado Water Conservation Board (CWCB); Financing and construction.
The KTC will be the lead for the financing, design, and construction of the project and will enter
into contracts and agreements with the various entities for the services provided by each.
Financial Analysis
The total estimated cost of the project (water rights purchase, engineering, legal, and
construction) is $800,Q00. The CWCB would loan $600,000, which is 75 percent of the total
cost. The KTC will establish a one-time assessment of lot owners to raise the remaining 25
percent of the project cost.
Table 2 is a summary of the financial aspects of the project. Annual costs (assessments plus
dues) will increase from $2000 per member (lot), up to $3419 per member with a Construction
Fund loan of $600,000. This represents a monthly assessment of $285 per lot, an increase over
current levels of $117 per month.
Table 2. Kenosha Trout Club HOA Financial Summary
Project Cost $800,000
CWCB Loan Amount $600,000
CWCB Loan Pa ment includes 10% reserve. $45,411
Number of Members Membershi Units or Lots 32
Current Assessment and Dues er Member Lot $2000
Future Assessment and Dues er Member Lot $3419
Future Assessment er Member, er Month $285
Annual Loan Cost er acre-foot 110+46 acre-feet total ield $291
MHI Park Coun , 1990 1990 State Avera e=$30,140 $32,102
Water is used by the KTC (lot owners) to keep the lake full for fish, wildlife and recreational
purposes. This use occurs within an existing subdivision located in unincorporated Park County.
Homes within the subdivision are typically smaller second homes used for recreation. Since the
Park County MHI is classed as °average°, the Standard municipal lending rate of 5.5% for 30
years would apply.
Credit worthiness: The KTC has no debt. Table 3 shows the Financial Ratios and indicates,
with the exception of the Cost per acre-foot, average to strong abiliry to repay with the project in
place. (The CWCB does not have a rating standard for cost per acre-foot when the water is
used for fish culture.)
Kenosha Trout Club Page 7 of 9
Feasibility Study - Augmentation Water Purchase 1038KTCO2
March 2001