C150063 Feasibility Study

• Contract/PO #: C150063
• Contractor Name: Jackson Lake Reservoir & Irrigation Company
• Contract Type: Loan
• Water District: 1
• County: Morgan
• Bill Number: SB 94-29
• Loan Projects - Doc Type: Feasibility Study

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THE JACKSON. LAKE RESERVOIR AND IRRIGATION COMPANY

NOTES TO FINANCIAL STATEMENTS

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Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

PrODertv and Eouioment (continued)

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A portion of the Company's assets are owned jointly with the Fort
Morgan Reservoir and Irrigation Company and the Fort Morgan Water
Company, Ltd.. The cost recorded in these financial statements
represents the Company's portion of the total cost.

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Income Taxes

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No provision for income taxes has been made as the Company is exempt
under Section 501(c) (12) of the Internal Revenue Code.

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Note 2: DEFERRED REVENUE

Pursuant to a lease agreement with the State of Colorado, Department of
Natural Resources for the Division of Parks and Outdoor Recreation
dated December 31, 1985, the State agreed to pay a lump sum of $99,500
for certain recreational rights at the Jackson Lake Reservoir, The
original lease term is from December 31, 1985 through December 31,
1999. The lease revenue for 1998 and 1997 is $7,107 for each year.
The balance at December 31, 1998 of $7,107, and December 31, 1997 of
$14,214 is to be recognized o~er the remainder of the lease agreement.

I Note 3: WATER DECREE

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Water decree represents the cost of a water decree under which the
Company is entitled to withdraw 30 cubic feet per second, not to exceed
1,200 acre-feet annually, of water from the Day Seep ditch.

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Note 4: PUBLIC SERVICE STORAGE LEASE

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In 1991, the Company entered into a 40 year agreement with the Public
Service Company of Colorado whereby the Public Service Company agrees
to store a minimum of 250 acre-feet of water in Jackson Lake Reservoir
annually. An adjustable rate is charged to Public Service Company for
each acre-foot of water stored in Jackson Lake Reservoir. The Company
charged $20.47 per acre-foot for a total lease fee of $5,118 and $5,138
for 1998 and 1997, respectively.

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Note 5: FINANCING INFORMATION

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In January 1994, the Company received preliminary approval on a
$1,000,000 loan from the Colorado Water Conservation Board, If
finalized and accepted by the Company, the proceeds of the 30 year, 4%
note would be used to finance a major reconstruction project on the
Company's dike structure, At December 31, 1998, the Company has not
yet entered into the loan contract.

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