02000000008 Feasibility Study

• Contract/PO #: 02000000008
• Contractor Name: Lake Canal Reservoir Company
• Contract Type: Grant
• Water District: 0
• County: Larimer
• Loan Projects - Doc Type: Feasibility Study

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has been lost. Alternative 2, however, is the least costly per acre-foot of storage and would be
the most likely choice if the Company decided to proceed. Based on this, the following financial
plan will be developed for Altemative 2.
FINANCIAL PLAN
The required capital for the project, Alternative 2, during the two years that would be required
for design and construction would be as shown in Table 4. The funds required would necessitate
the Company raising assessments immediately to provide the cash flow indicated.
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2002
f►•I1Zlk3
0
LAKE CANAL
PARTICIPATION/PMT'S
$ 4,240
i, �: .11
TABLE 4
SCHEDULE
CWCB 90% LOAN
$ 38,160
$ 437,400
The Lake Canal Reservoir Company will decide during 2001 whether to apply for a 90% loan
equal to $ 475,600 from the Colorado Water Conservation Board (CWCB) for 30 years at 3.75 %
interest. The remainder of the project cost and the loan payments would be paid by an increase
in assessments on the shares of stock.
Revenue for operations and payment of loans is derived from assessments on 160 shares of
outstanding stock. Assessments aze presented to stockholders and approved at the annual
stockholders meeting held in January of each year. The assessment were at $115 per share in 2000
and were raised to $130 per share in 2001.
The financial condition of the company is solid at the present time. The company only has one
outstanding debt which is to the Colorado Water Conservation Board for the rehabilitation of
North and South Gray Lakes. The balance on this loan is approximately $ 95,188 and has a
maturity date of July 2018. The yearly payment on this loan is $6,920 which is $43.25 per share
of stock. This loan is included in the Annual Financial Schedule which is shown in Table 8. The
CWCB loan is included in column (5) of this table.
The Company has carried a cash balance of approximately 100% of their annual expenses from
year to year. However, due to the cost of the project they wii] have to significantly increase their
assessments to pay for their 10% share of the project and the annual loan payment.
Table 8 shows the cash flow and annual financial schedule for the Company's operations which
includes the proposed $ 475,600 CWCB loan at 3.75% interest over a 30-year repayment period.
' Gray Lake-Feasibiliry Study
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