CT2015-040 Increase Financials - Laserfiche WebLink

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PENROSE WATER DISTRICT 340 Grant Street — Penrose,CO 81240 DEBT OUTSTANDING The following table summarizes the debt activity of the District during the year. Balance, Beginning of Payments and Balance, Due Within Description Year Additions Deletions End of Year One Year Water revenue refunding bonds,series 2003 $ 165,000 $ - $ (165,000) $ - $ - Colorado Water Conservation Board 3,510,000 465,817 - 3,975,817 - Total $ 3,675,000 $ 465,817 $ (165,000) $ 3,975,817 $ - The District has a loan from the Colorado Water Conservation Board in the amount of $8,844,570 for the construction of a well field and water pipeline. To date $3,975,817 has been advanced under the loan. It is anticipated that the balance of the funds will be advanced to the District during 2013 and 2014. At the completion of the project the District will begin repaying the 30 year loan.Annual debt service payments are expected to be $465,947. ECONOMIC AND OTHER FACTORS Since 1993 the Penrose Water District has declared enterprise status for budget purposes. Each year the District calculates anticipated revenues and finds that expected income realized from "grants", as defined by TABOR, equals less than ten percent of total income. Notwithstanding that declaration, in 2000, in order to comply with lending requirements of United States Department of Agriculture-Rural Development (USDA-RD), the District created the Penrose Water District Water Activity Enterprise, specific for the purpose to receive grants and loans from that agency. Since its inception in 1968, the District's raw water supply has depended solely on a raw water lease from a local irrigation company whose supply is from a single source. The most evident economic factor and budgetary influence is the District's endeavor to acquire a more secure and diverse raw water supply. In 2005, and in 2007, the District acquired two irrigated ranches near Howard, Colorado, commonly called the Goodwin Ranch and the McEnulty Ranch respectively. The water rights associated with these ranches are of the Pleasant Valley Ditch. The District filed for a change-of- use of the water rights from irrigation to municipal purposes and was issued a decree in April of 2010. The yield from the decree is 330 acre feet. As of 2012, both properties are in-process of revegetation of native plant species. The Goodwin Ranch was purchased with a 3 million dollar, interest-only, bridge loan issued by Fremont National Bank (FNB) and assumed by Wells Fargo Bank (WFB) when WFB assumed FNB. In 2011, the District paid off the WFB loan (bonds) with capital savings. The District sold 261(+/-) acres of the Goodwin Ranch in November of 2012. The sale of an additional 144(+/-) 4