PROJ00396

• Contract/PO #: C153741
• Contractor Name: Vouga Reservoir Association
• Contract Type: Loan
• Water District: 72
• County: Saguache
• Bill Number: SB 94-029
• Loan Projects - Doc Type: Feasibility Study

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NOTES TO FINANCIAL STATEMENTS OF REMY LABROUCHE

The following notes to the Financial Statements ofRemy Labrouche, doing business as R&S
Holsteins, have been prepared from information provided by Remy and Ruth Labrouche:

1. R&S Holsteins is owned and operated by Remy Labrouche, 1525 P Road, Lorna,
Colorado 81524. Mr. Labrouche has owned and operated this business for 34 years.

2. R&S Holsteins is a feedlot, raising Holstein heifers from 350 pound heifer calves to
springing heifers (heifers that are ready to calve) for dairies. R&S Holsteins has a capacity
of 5,000 head of cattle, and has operated to this maximum capacity for twenty years. It
has a gross monthly income ofapproximately $115,000.

3. The Lorna operation ofR&S Holsteins contains 330 acres ofland. All of this land has
been paid for by Mr. Labrouche. However, 123 acres of this land is subject to a
mortgage, the proceeds of which were used to purchase the ranch in Saguache County
that is referred to in Paragraph 7 below. Land in the area of the Lorna operation is
currently selling for prices between $2500 and $5000 per acre.

4. Mr. Labrouche obtains an annual operating loan from Norwest Bank of Grand Junction
for the operation ofR&S Holsteins. That loan is collateralized by feed on hand (hay and
corn) and by some of the equipment ofR&S Holsteins. However, there is enough value in
the feed on hand to fully cover the operating loan, without considering any livestock or
equipment. .

5. The equipment ofR&S Holsteins includes the following:

a. 12 large trucks
b. 8 pick up trucks
c. 3 loaders
d. 1 dozer
e. 1 grade
f 2 backhoes
g. 6 late model John Deere tractors
h. Numerous items offarm machinery and other farm implements.

6. The Statement of Revenues and Expenses for December 31, 1994, for Remy Labrouche,
doing business as R&S Holsteins, shows expenses of approximately $484,000 for "feed,
hay and minerals". Of this amount, $100,000 was a prepayment in 1994 for the year 1995.

C:\WPWlN6O\MAH\LABR~NOT. WPD

JulyS, 1995