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<br /> - 11 - <br /> <br />NPIC has eight outstanding loans with the CWCB dating to 1985. NPIC has <br />made all scheduled payments on each of these loans. They have no other <br />outstanding loans at this time. NPIC uses revenue from recreation leases on <br />their reservoirs to make CWCB loan payments. In 2013 the CWCB debt <br />retirement minus lease income accounted for $2.61 of the $120 assessment. Of <br />the remaining $120 assessment, $79.89 went to Operations and Maintenance, <br />$26.50 went to the Halligan/Seaman Project EI, and, and $11 went to Water <br />Assessments. The Water Assessment fees include $1.50/unit for 40,000 units of <br />Colorado Big Thompson water and fees for shares in other ditch companies. <br /> <br />In addition to the approximately $275,000 in recreational leases NPIC receives <br />annual payments of $188,224 for the sale of the Halligan Reservoir site to the <br />City of Fort Collins. <br /> <br />Complete financial information may be found in NPIC’s Annual Reports. The <br />Annual Reports for 2010, 2011, and 2012 are found in Appendix D. <br /> <br />Alternative financing considerations: <br /> <br />NPIC has investigated alternative financing sources. <br /> <br />Collateral: <br /> <br />As security for the CWCB loan NPIC can pledge assessment income, and the <br />project itself. <br /> <br />Economic Analysis: <br /> <br />The economic benefit of the project is considerable. By rehabilitating the <br />reservoir NPIC will be able to store their full decree of 1781 acre-feet of water, <br />regaining 674 acre-feet of water from the restricted storage level. Using the an <br />estimated cost of building new storage of $3,000/AF the value of the project is <br />$2,022,000 compared to the estimated cost of $1,800,000. <br /> <br />Drought conditions over the past decade have driven water prices to as high as <br />$400 per acre-foot. Annual loan payments of $83,466.10 for this project result in <br />annual water costs of $124 per acre foot for the 674 acre-feet of water gained. <br /> <br />Social and Physical Impacts: <br /> <br />As previously discussed, CPW has leased the reservoir for fishing and recreation <br />for many years. Lease agreements with the CPW expire in 2025 but are subject <br />to termination upon proper notice. Unless an equitable agreement is reached <br />whereby CPW actively maintains the facility it is likely that a new lease will be <br />granted to a private entity.