BOARD01615

• Board Meeting Date: 1/24/2001
• Description: CF Section - Kenosha Trout Club ‎(Homeowners Association)‎
• Board Meetings - Doc Type: Memo

213
l. Kenosha Trout Club Agenda Item 11 d.
January 24-25, 2001
(;
. also includes the engineering and legal costs associated with conversion of those rights
to augmentation use, and the engineering and construction costs associated with
Installation of a low-level outlet in the dam, and raising the dam approxinately12 Inches.
The exact rights that the KTC will purchase are yet to be determined, because of the
uncertainties of availability and purchase price. (Senior water rights have an estimated
market value of about $5,500 to $7,500 per acre-foot of consumptive use.) Regardless
of the rights selected, they will need to represent approximately 46 acre-feet of
consumptive use per year.
Financial Analvsls
The total estimated cost of the project (water rights purchase, engineering, legal, and
construction) is $800,000. Staff recommends a loan amount of $600,000, which is 75
percent of the total cost. The KTC will establish a one-time assessment of lot owners to
raise the remaining 25 percent of the project cost.
Table 1 Is a summary of the financial aspects of the project. Annual costs (assessments
plus dues) will increase from $2000 per member (lot), up to $3419 per member with a
Construction Fund loan of $600,000. This represents a monthly assessment of $285 per
lot, an Increase over current levels of $117 per month.
Table 1. Kenosha trout Club HOA Financial Summary
. Project Cost $800,000
CWCS Loan Amount $600,000
CWCS Loan Payment (includes 10% reseNe.) $45,411
Number of Members (Membershio Units or Lots) 32
Current Assessment and Dues Der Member (Lot) $2000
Future Assessment and Dues Der Member (Lot) $3419
Future Assessment Der Member Der Month $285
Annual Loan Cost Der acre.foot (110+46 acre-feet total vieldl $291
MHI Park Countv, 1990 11990 State Averaoe '" $30,140\ $32,102
Water is used by the KTC (lot owners) to keep the lake full for fish, wildlife and
recreational purposes. This use occurs within an existing subdivision located in
unincorporated Park County. Homes within the subdivision are typically smaller second
homes used for recreation. Since the Park County MHI is classed as "average", the
Standard municipal lending rate of 5.5% for 30 years would apply.
Alternative financing sources: The KTC actively sought alternative financing, and did
apply for a loan from their Financial Institution. However the terms were prime plus 1 %.
This option would result in a loan payment of approximately $80,000 per year
(compared to $45,411 with a CWCS loan.) The Financial Institution option is not feasible
for the Association.
. Credit worlhiness: The KTC has no debt. Table 2 shows the Financial Ratios and
Indicates, with the exception of the Cost per acre-foot, average to strong ability to repay
with the project in place. (The CWCS does not have a rating standard for cost per acre-
foot when the water Is used for fish cuiture.)
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