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<br />The actual assessments in 1997 compared to those recommended In the 1995 <br />. feasibility study are as follows: <br /> <br />Ditch Company <br /> <br />Shares <br /> <br />1997 Assess <br /> <br />Feasibilitv Rec. <br /> <br />Lone Cabin Ditch Co. <br /> <br />8,368 <br /> <br />$1.50 <br /> <br />$2.28 <br /> <br />Minnesota Canal & Res. <br /> <br />1,700 <br /> <br />$17.00 <br /> <br />$18.Q2 <br /> <br />Turner Ditch Co. <br /> <br />154 <br /> <br />$30.43 <br /> <br />$56.66 <br /> <br />From this information it is clear that the three ditch companies associated with the <br />BRC have not established their share assessments at levels necessary to provide the funds <br />for operations and maintenance, reserve accounts and debt service. <br /> <br />While the BRC has claimed a hardship due to weather and labor problems, it has <br />not followed the project's financial plan as outlined in the feasibility study or responded <br />to the earlier recommendations of the CWCB staff. By simply rolling the IDC into the <br />loan principal, and financing it over 40 years, the borrower has downplayed the <br />importance of their financial responsibilities to the Colorado Water Conservation Board. <br /> <br />. <br /> <br />The loan contract for this project clearly states in paragraph A.6.c. that the BRC <br />board of directors shall adopt an order or a resolution (attached) to "Levy annual <br />assessments sufficient to repay the annual amounts due under this contract." Since all <br />three ditch company's 1998 annual meetings are scheduled in the near future, the <br />necessary assessments could be established at those meetings. <br /> <br />STAFF RECOMMENDATION <br /> <br />We recommend, provided all three companies raise their assessments at their next <br />respective regularly scheduled annual meetings, or sooner, sufficient to cover operation <br />and maintenance, reserve accounts, and debt service based on 1998 cost estimates, that <br />under authority of Section 37-60-120 CRS, the Board: <br /> <br />I. Find that the BRC has encountered significant and unexpected financial <br />difficulties and that it has been duly diligent in its efforts to comply with the <br />repayment provisions of its contract with the Board, and <br />2. The Board defers Beaver Reservoir Company's Interest During Construction <br />payment of $12,023.63 for the Rehabilitation of the Beaver Reservoir Project <br />until November 1, 1998, at which time the first annual loan payment of <br />$16,136.87 is also due. <br /> <br />. <br />