|
Park Center Water District
<br />Notes to the Financial Statements
<br />The District has issued Water Revenue Bonds, Series 1994 in the principal amount of $160,000 to pay for construction of a
<br />new treatment plant. The annual interest rate of this issue is 5.00%. Principal and interest are payable on June 1 and
<br />December 1 of each year through 2034. At December 31, 2005, the balance on these bonds is $140,100.
<br />C Maturities on Long-term Debt
<br />Table 2 -Principal Maturities on Long-term Debt
<br />Year Principal Interest Total
<br />2006 $ 25,232 $ 52,368 $ 77,600
<br />2007 27,244 51,104 78,348
<br />2008 26,313 49,797 76,110
<br />2009 24,300 48,440 72,740
<br />2010 25,200 47,201 72,401
<br />2011 to 2015 148,500 214,966 363,466
<br />2016 to 2020 193,500 172,365 365,865
<br />2021 to 2025 208,000 119,114 327,114
<br />2026 to 2030 202,400 70,370 272,770
<br />2031 to 2035 ]58,899 15,481 174,380
<br />Total $ 1,039,588 $ 841,206 $ 1,880,794
<br />~~ _~
<br />5 Commitments and Contingencies
<br />A TABOR Amendment
<br />Colorado voters passed an amendment to the State Constitution, Article X, Section 20, which has several limitations,
<br />including revenue raising, spending abilities, and other specific requirements of state and local governments. The
<br />Amendment is complex and subject to judicial interpretation. The District believes it is in compliance with the requirements
<br />of the amendment. However, the entity has made certain interpretations of the amendment's language in order to determine
<br />its compliance.
<br />B Risk Management
<br />The District is exposed to various risks of loss from torts; theft of, damage to, and destruction of assets; business interruption;
<br />errors and omissions; employee injuries and illnesses; natural disasters; and employee health, dental, and accident benefits.
<br />Commercial insurance coverage is purchased for claims arising from such matters. Settled claims have not exceeded this
<br />commercial coverage in any of the three preceding years.
<br />The District provides credit to its customers for water purchases without collateral. However, the District does have the
<br />authority to lien property if water bills are not paid.
<br />C Water Lease
<br />One of the District's sources of water is a well owned by the U.S. Department of Interior, Bureau of Land Management
<br />(BLM). The District's lease of this well is for a period of 30 years and is due to expire on June 30, 2021. The District has a
<br />preferential right for renewal of the lease at the end of this period.
<br />Terms of the lease allow the BLM to adjust the rates charged to the District every five years. Currently, the District is
<br />charged $.20 per one thousand gallons of water pumped from the well. This price expired on June 30, 1996, and to date no
<br />new price has been established.
<br />9
<br />
|