C153827 Feasibility Study

• Contract/PO #: C153827
• Contractor Name: Julesburg Irrigation District
• Contract Type: Loan
• Water District: 64
• County: Logan
• Bill Number: EIA
• Loan Projects - Doc Type: Feasibility Study

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JULESBURG IRRIGATION DISTRICT
NOTES TO FINANcIAL STATEMENTS
December 31, 1996

NOTE F - TAX, SPENDING AND DEBT LIMITATIONS

In November 1992, COlorado voters passed an ~~ndment to the State
constitution (Article X, Section 20) which limits the revenue
raising and spending abilities of state and local governments.
The amendment allows annual increases in property taxes, other
revenue and fiscal year spending based on the annual inflation
rate and increases resultinq from local growth due to new
construction. Fiscal year spending as defined by the amendment
excludes spending from certain revenue and financing sources such
as federal funds, gifts, property sales, fund transfers, damage
awards, and fund reserves (balances). The amend~nt forbids any
increaseS in mill levies, tax rates, new taxes or creation of
multi-year dsbt without voter approval.

The amendment also requires that reserves be established for
declared emergencies, with 2t of fiscal year spending required in
1994 and 3' thereafter. The District bas $65,750 authorized
but unissued debt subject to the amendment's limitations. Based
on estimated fiscal year spendinq of $362,266 for 1997, $10,868 of
year-end fund balances in the General Pund has been reserved for
emergencies. The management of the District is of the opinion
that they bave complied with all provisions of the amendment.
however, they also believe, based on discussion with legal
council, that they may not be subject to the amendment since all
their revenue comes trom user charqes.

NOTE G - PURCHASE OF EQUIPMENT UTILIZING CAPITAL LEASE FINANCIN~

The District entered into a lease aqreement for a caterpillar,
dozer, truck, and a low boy trailer during 1995. The terms of
the lease purchase agreement required the District to pay an
initial lease payment of $10,000 and two. subsequent annual lease
payments of $10,000 each. The lease is conditional upon the
annual appropriation of funds for the year 1997, The title to the
property 1a to be transferred to the District upon the payment of
the third annual lease payment.

The District entered into a capital lease aqreement for the
acquisition of a Caterpillar 320L Excavator backhoe in the amount
Of $159,080 on December 6, 1996. The terms of the agreement
called for a trade in with a trade in allowance of $13,500, a
$40,000 cash down payment, and ten semi-annual lease payments of
$12,445. The lease is conditional upon the annual apropriation
of funds for the year 1997 and thereafter. The title for the
property i8 to be transferred to the District upon the payment of
the final semi-annual lease payment.

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