C153333 Feasibility Study

• Contract/PO #: C153333
• Contractor Name: Beaver Park Water, Inc.
• Contract Type: Loan
• Water District: 12
• County: Fremont
• Bill Number: SB 80-67
• Loan Projects - Doc Type: Feasibility Study

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if available, and the delivery system was sized to deliver
water to the 10-acre tracts in 4 applications per season of
3 days duration each,
The present company provided shares in exchange for the
original certificates on a one-to-one basis. Therefore, the
present system is based upon one share per acre.
As a mutual ditch company, Beaver Park Water can only
raise revenue by assessments on its shareholders, The
company does hold title to its water rights and land hold-
ings and is capable of entering into contractual arrange-
ments with the Colorado Water Conservation Board,
There are presently about 350 shareholders in the irri-
gation who have a total of 3,454 shares, The annual assess-
ment is $50 per share, The annual income and expenses for
1977 to 1979 are listed below,

DATE
1977
1978
1979 .
(Budget)

INCOME.
$194,368
287,133
195,435

...\
OPERATING EXPENSE
$55,187
62,106
42,030

INTEREST EXPENSE
$103,875
123,702
149,100

The system has a total debt of $1,517,214 or $439 per share,
This debt includes $1,420,000 due to the Wichita Band of
Cooperatives forthe.original purchase and $97,214 due to the
U.S. Government for a loan made for system repairs on three
laterals in 1977,
As indicated in the table above, 2/3 of the annual
expenses on the irrigation system are for interest on the
outstanding debt. The note with the Wichita Bank of Co-
operatives has a "floating" interest rate which varies with
the prime interest rate, The current interest rate is 10.5%,
A copy of the 1978 balance sheet and 1979 budget are in-
cluded in this chapter.
If the interest espenses could be reduced by refinanc-
ing the debt, that money could be spent on repairs and
improvements to the irrigation system. The present assessment