PROJ00018

• Contract/PO #: C150010
• Contractor Name: Columbine Ranches POA
• Contract Type: Loan
• County: Adams
• Bill Number: SB 99-173
• Loan Projects - Doc Type: Feasibility Study

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REPAYMENT CAPABILITIES TO RETIRE LOAN

The CRPOA desires to develop an augmentation plan for their well which
will allow its continued use into the future. They are seeking a loan from CWCS
to assist them in the purchase of the needed senior water right. They are aware
that CWCS requires that the maximum amount of the loan cannot exceed 75
percent of the total project costs.
The CRPOA proposes to raise their portion of project costs by passing a
one-time assessment on all the lot owners to raise the 25 percent initial payment
for the water project. Assuming that 50 shares of Fulton Ditch water are
purchased at $6,000 per share and il1cluding the $7,000 of engineering costs
~ and the $10,000 for providing a return flow structure the total cost of the project
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~ would be $317,000 with CRPOA raising $79,250 by the one-time assessment on
~J all 54 lots, $1,468 per lot. To provide some additional funds for unforeseen
\ '. expenses, the CRPOA would propos~ the initial assessment would be $1,500
\1-; per lot which would be due within 30 days of the formal vote of CRPOA members
/\" authorizing final purchase of the water rights.
To repay the CWCS loan it will be necessary for CRPOA to make its first
annual payment on the loan anniversary date. The CRPOA will raise revenues
for that payment by assessing each lot owner to cover the other expenditures
shown in Table 4. The annual assessment to each of the 54 lot owners would
have to be at least $531 for the first 1 Q years and then could be decreased in the
eleventh and twenty-sixth year to be Consistent with data in Table 3.
An annual assessment of $531 per lot would raise $28,649 per year which
would provide 120 acre-feet of water to the centralized system. That is a cost of
$238.75 per acre-foot or 73 cents per 1000 gallons. The $531 per year annual
assessment is somewhat higher than the $400 to $500 per year assessments
which were paid in 1996 and 1997. The assessment was dropped to only $200
for 1998 because of the large cash reserve at the beginning of the year, but an
additional $100 assessment was approved at the October 17, 1998 CRPOA
meeting. At both the February 14, 1998 and October 17, 1998 meetings, the
CRPOA membership understood that they would have to make a down payment
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