C150082 Feasibility Study

• Contract/PO #: C150082
• Contractor Name: Consolidated Home Supply Ditch and Reservoir Company, The
• Contract Type: Loan
• Water District: 3
• County: Larimer
• Loan Projects - Doc Type: Feasibility Study

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CONSOLIDATED HOME SUPPLY DITCH AND RESERVOIR COMPANY
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED OCTOBER 31, 2000

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Stock Assessment:

The Corporation annually assesses each share of stock for a pro rata
share of the anticipated costs of operating, maintaining and improving
the water storage and carrying facilities. To qualify for tax
exemption under Internal Revenue Code Section 501(c) (12), the Company
must collect at least 85% of total revenue from stock assessments.

CONCENTRATION OF CREDIT RISK ARISING FROM CASH DEPOSITS IN EXCESS OF
INSURED LIMITS

The Company maintains its checking account in one
institution located in Johnstown, Colorado. The balance is
the Federal Deposit Insurance Corporation up to $100,000.

financial
insured by

CERTIFICATES OF DEPOSIT - RESTRICTED

Farmers Home Administration (FrnHA), as a covenant to their loan
,agreement dated December 10, 1965, requires a restriction of cash of
$10,000. The Board of Directors of Consolidated Home Supply Ditch and
Reservoir Company has designated a cash restriction of at least one
annual payment of FmHA of $27,157. All certificates of deposit are
held at banks insured by the Federal Deposit Insurance Corporation.

OTHER ASSETS

The rock quarry property and Big Thompson Ditch & manufacturing stock
are recorded at original cost and are held for purposes of control or
other business advantage.

LEASES

The Company (Lessor) has leased property at Boedecker Reservoir and at
Lone Tree Reservoir to the State of Colorado for the use and benefit
of the Division of Wildlife and Wildlife Commission (Lessee).

Boedecker Reservoir:

The Boedecker Reservoir lease agreement is in effect for the period of
September 1, 1990 to August 31, 2005, (15 years). The lease agreement
is renewable for an additional term of 15 years at the Lessee's
option. The Company, as owners of said property, reserves the right
to use the reservoir for its operations and has given no guarantee as
to the level of water. The first payment was received in January,
1995. Since the lease payments precede the lease term, deferred lease
income exists at October 31, 2000 of $2,779,

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