PROJ00448

• Contract/PO #: C153345
• Contractor Name: Hotchkiss, Town of
• Contract Type: Loan
• Water District: 0
• County: Delta
• Bill Number: SB 77-35
• Loan Projects - Doc Type: Feasibility Study

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11-4

FINANCIAL STATUS OF TOWN AND WATER SYSTEM

This section analyzes the current financial status of the town

of Hotchkiss, with emphasis on the town's Water Fund. One

purpose of this Chapter is to develop the background that will be

needed if and when the town applies for financial aid from ~he

State of Colorado or from Federal agencies. Chapter VIII discusses

the development of a sound program to finance improvements and

expansion of the town's water system. That chapter also makes

recommendations on adjustments of water service charges.

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Most of the data on the current financial status of Hotchkiss
comes from "Financial Statements and Reports of Examination as of
December 31, 1974" as prepared by John C. Calhoun and Associates,
CPA's. As of December 31, 1974, the town's general fund was
reported to have assets totaling $12,051, or an amount equivalent
to about $20 per town res i dent. In 1974, the town's genera 1 fund,
which does not include the water fund, had an income of $36,844.
Over half of this sum came from property and sales tax.

As of December 31, 1974, the Water Fund cash assets and accounts
receivable totaled $26,472, and the physical water system was
valued at $119,815 on the books.

Tables 11-1 through Table 11-6, along with appropriate notes
(pages 11-12, 13 ) are reproductions of tables presented in the
"Report of Examination" by John C. Calhoun & Associates, dated
September 4, 1975.

Table 11-1 presents a summary of the major 1973-1975 expenses
incurred by the Hotchkiss water system.

Currently, the water system has no outstanding bonds or long term

debts. The water fund is self-sufficient in regard to operating

expenses; however, some limited capital improvements have been

made using Federal Revenue Sharing.

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