C150252 Feasibility Study

• Contract/PO #: C150252
• Contractor Name: Henrylyn Irrigation District
• Contract Type: Loan
• Water District: 0
• County: Weld
• Loan Projects - Doc Type: Feasibility Study

Assessments (or per acre tax levy) for the upcoming year are established on or before October 15,
by the Board of Directors, pursuant to the authority and procedures set forth in CRS sec. 37-41-120.
The current assessment level is $18 per acre which is an increase over the normal $14 to $15 per acre
range. It would be anticipated the assessment rate would increase due to the planned rehabilitation.
The assessments for the years 1996 to 2007 are suinmarized as follows.
Year Assessment
2007 $ 18
2006 $ 18
2005 $ 15
2004 $ 15
2003 $ 15
2002 $ 15
2001 $ 15
2000 $ 15
1999 $ 14
1998 $ 14
1997 $ 14
1996 $ 14
The financial condition of the HID is solid at the present time. The HID has a large cash reserve
at this time with liquid cash assets of $1,388,781 which includes cash in their checking and savings
accounts and certificate-of-deposit. The HID also has investments of $414,555. They plan to pay
for their portion of the project and the loan origination fee using their cash assets.
Table 9 shows the cash flow and annual financial schedule for the HID's operations which includes
the proposed $2,162,700 CWCB loan at 2.5% interest over a 30-year repayment period. Since the
HID has a significant cash reserve, additional funds have not been set aside in this analysis to
establish a separate Project Reserve Fund. They have a"certificates-of-deposit" with a value of
$558,898 and they also have an investment in "I Bonds" valued at $414,555. For 2006, Column (12)
in Table 9 shows the actual value of the company's investments and CD's and Column (11) shows
the actual cash balance of their yearly operations.
Column (1) in Table 9 is the assessment level per acre; Column (2) is the assessment level times
32,750 acres in the District. Columns (3), (4), and (5) are from the 2006 financial statement. Note,
the Other Income for the years after 2006 have been reduced as the Other Income is generally not
as high as in 2006 due to the HID selling some of their investment bonds. The amount used in
Column (3) starting in 2007 is what appears to be more common based on their 2004 and 2005
financial statements.
Column (4) is a summary of the loan payments for the four outstanding loans outlined previously
in this report.
Horsecreek & Prospect Reservoirs - 06.014
Henrylyn Irrigarion District Page 17