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<br />
<br />FINANCIAL PLAN
<br />
<br />Sources of financing for the project consists of two loans from the Colorado Water Conservation
<br />Board, The first loan, approved in November 1997, for $500.000 will be used to complete the NPIC
<br />#6 Outlet Ditch Repair project. Any remaining amounts from this loan will be applied to the other
<br />projects./This loan is a 20-year loan at an interest rate of 4,03% and covers 75% of the project costs
<br />with NPIC funding the remaining 25 % of the project costs. The second loan is a requested loan for
<br />$1,107,264 which is 90% of the remaining project costs (0.90*($1,896,960 -$500,00010.75), at an
<br />annual interest rate of 4.04 % for a 20 year term. The 4,0}% interest rate for the $500,000 loan was
<br />determined by the CWCB at the time of approval. The 4,04 % interest rate for the second loan is based
<br />on the weighted average of interest rates for the 54% Municipal and Industrial shareholders (4,50%).
<br />and the 46 % Agricultural shareholders (3.5 %),
<br />
<br />Revenue for operations and payment of loans is derived from assessment of 10,000 shares of
<br />outstanding stock, Assessments are presented to stockholders and approved at the annual stockholders
<br />meeting in February of each year. The 1998 assessment was $85 per share.
<br />
<br />NPIC has spent approximately $275,000 to date on the NPIC #6 Outlet Ditch project. This money
<br />came out of the 1998 operation expenses and was designated as the Companies share of the $500,000
<br />loan, NPIC's 10% share of the second loan will come from an increase in assessments in the year
<br />2000, recreation leases, and any excess money available in the operations budget.2
<br />
<br />The financial condition of the company is solid at the present time, The company
<br />obligations other than those listed in the financial statement found in Appendix E,
<br />obligations include annual payments to the CWCB for six loans:
<br />
<br />has no other
<br />Current loan
<br />
<br />L Fossil Creek Dam- A 40-year loan at 5% interest for $1,332,000 initiated in 1985 with annual
<br />payments of $77,612,
<br />2, NPIC Reservoir #15- A 40-year loan at 5% interest for $1,153,000 initiated in 1987 with annual
<br />payments of $67.192,
<br />3, Park Creek Reservoir- An ll-year loan at 5% interest for $165,000 initiated in 1989 with annual
<br />payments of $19,782.
<br />4, Clark Lake Dam- A 40-year loan at 5 % interest for $404,500 initiated in 1990 with annual
<br />payments of $23,574.
<br />5. NPIC Reservoir #2- A 40-year loan at 5% interest for $341,000 initiated in 1992 with annual
<br />payments of $19.847,
<br />6, NPIC Reservoirs #5 & #6- A 40-year loan at 2% interest for $1,762.000 initiated in 1996 with
<br />annual payments of $64,378,
<br />
<br />An additional loan from the First National Bank of Fort Collins is an unsecured loan that is used to
<br />provide for shortfalls in operating expenses. This loan is typically paid off as revenue from
<br />assessments and operating income become available,
<br />
<br />Table 13 shows cash flow and the annual financial schedule for NPIC's operations, The columns in
<br />Table 13 are numbered and a description of each numbered column follows.
<br />
<br />. Column 1 lists the projected assessment in current dollars required to cover all loan payments,
<br />operating and maintenance costs. and to maintain a project reserve fund as required by the CWCB.
<br />
<br />Page 22
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