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THE NORTH POUDRE IRRIGATION COMPANY
1988
~ " ' t 6 N .
DIRECTORS
Robert L. Stieben ... Wellington, Colorado Manuel Pineda ... Fort Collins, Colorado Arthur Meyer ... Wellington, Colorado Carl J. Judson, Jr ... Livermore, Colorado Dennis Marsh ... Fort Collins, Colorado
OFFICERS
Robert L. Stieben ... President Manuel Pineda ... Vice President Ben Dumler. ... Manager Vi Proctor ... Secretary/Treasurer
ORDER OF BUSINESS
According to the By-Laws, the order of business of the stockholders meeting shall be as follows:
1. Meeting called to order by the chairman at 10:00 a.m.' 2. Appointment of three stockholders of the company as
a credentials committee t
3. Registration of proxies with credentials committee v 4. Report of credentials committeev
5. Annual report ~/
6. Nomination of directors
7. Opening of polls for election of directors 8. Old business
9. New business
(A) Vote on assessment for the year.
The water supply outlook for 1988 was not good at the first part of the year. Carryover storage from 1987 was the lowest it had been for several years following a hot dry summer. Snowpack did accumulate regularly on the high mountains of the Poudre River Basin through- out the winter so that at the beginning of irrigation season runoff was forecast to be considerably above normal.
Runoff from the snowpack occurred over an extend- ed period of time and the water users of the valley were able to capture almost all of it and put it to good use before it escaped to the South Platte River. North Poudre stockholders went through the season with an adequate supply of water, helped by a very timely rain in May. Very little rain fell during the rest of the growing season. Timely irrigations, abundant sunshine, and above normal temperatures produced exceptionally good yields of corn and sugar beets. Prices received by North Poudre stockholders for their crops were consid- erably higher than in the recent past, due primarily to the severe drought conditions over a large part of the nation.
The Company was given the opportunity to prepay at a substantial discount the Bureau of Reclamation loan used to build Park Creek reservoir. The balance out- standing of that loan was $676,134.35 to be repaid with 33 remaining annual payments of about $19,900 each.
This was an interest free loan with interest payable only on a small portion of the loan attributable to "excess acres", which included water used for municipal and industrial uses. The last payment of interest on "excess acres" was about $3,000 and this amount has been increasing steadily.
The cost to prepay this loan was $164,321.25. The Colorado Water Conservation Board agreed to loan that full amount at five percent interest, with the require- ment that the Company repay the loan with annual payments of approximately the same amount as had been made in the past. Eleven payments of $19,782.45 each will repay the principal with interest. This prepay- ment and refinancing was done within a limited period of time to meet the deadlines set by the Bureau of Reclamation.
The job of renovating Clark's Lake dam and outlet works is under way. Weinland Construction, Inc. of Loveland was the successful bidder on this project. Its base bid of $591,760 was somewhat less than had been estimated by the engineer. Earthwork has been shut down because of cold temperatures, but some progress is being made on other phases of the project as weather permits. The contract date of completion is May 1, 1989.
The City of Fort Collins is conducting a study of the possibilities of an enlarged reservoir at· the Halligan site. This study is designed to identify any negative impacts that may prevent an enlarged reservoir from being built and to evaluate the amount of additional water that may be available for an enlargement. The cost of this study is being paid for by the City. When the results of this study are completed, Fort Collins and North Poudre will have a basis from which to begin negotiations as to possible sharing of costs and benefits of an enlarged Halligan reservoir.
During 1988, fifteen land use changes next to or surrounding North Poudre facilities were requested of
the Larimer County Planning Commission. To protect its property rights, North Poudre must respond to the Planning staff in writing and attend up to three meetings for each application. Also, agreements be- tween North Poudre and the applicants are necessary in most instances. This activity has increased steadily in the past few years.
Beginning in 1989 the stock ownership requirement for a small pump permit has been changed. The new policy requires that one share of water be owned and dedicated to the pump for a new pump permit to be issued for 1989. Existing pump permit holders must own a fu II share of water before a renewal wi II be issued in 1990.
In this report, I have tried to point out some of the more important activities of the company during the past year. Questions about these or other activities are encouraged at the annual meeting. Your attendance and participation are encouraged.
Respectfully Submitted, Robert L. Stieben, President
There are two ways to slide easily through life:
to believe everything or to doubt everything:
both ways save us from thinking.
-Alfred Korzybski
RECOMMENDED BUDGET FOR 1989 Items per Share
$ 8.00 for water assessment 17.00 for loan retirement
15.00 for reservoir rehabilitation
35.00 for operation, maintenance and weed control
$75.00
$45.00 per share due and payable April1, 1989, interest at 1 1f2 °/o per month charged after May 1, 1989.
$30.00 per share due and payable October 1, 1989, interest at 1 1f2 °/o per month charged after November 1, 1989.
Total amount owed must be paid prior to water delivery.
Total assessments of $75.00 per share are due April 1, 1989 on two shares or less.
ANNUAL PRECIPITATION IN INCHES
Year Wellington Cactus Buckeye Livermore
1950 13.89 8.08 9.39
1951 21.59 15.83 15.02
1952 11.87 14.01 8.82
1953 12.10 7.79 13.11
1954 8.30 7.10 7.90
1955 12.84 13.48 10.20
1956 15.84 9.44 13.41
1957 19.48 12.90 16.67
1958 17.99 15.70 14.21
1959 14.58 12.61 12.61
1960 8.84 9.61 7.67
1961 24.95 19.38 18.51
1962 13.90 9.67 13.18
1963 12.10 9.70 11.84
1964 5.64 4.51 5.21
1965 16.50 11.55 15.46
1966 8.21 4.74 8.10
1967 22.52 18.28
1968 10.26 9.18 8.49 4.80
1969 15.39 15.80 14.83 15.82
1970 11.48 14.22 9.61 13.71
1971 13.27 13.04 10.57 12.45
1972 13.50 15.02 10.87 11.22
1973 10.90 15.11 11.10 14.64
1974 8.84 10.65 9.56
1975 11.13 11.90 7.48
1976 10.39 7.00 10.77
1977 10.35 9.72 13.88
1978 10.25 12.87 11.70 15.03
1979 19.59 20.78 16.27 21.50
1980 13.51 12.58 14.61 17.61
1981 12.93 12.01 15.48 14.56
1982 19.07 17.63 18.36 16.64
1983 16.68 18.73 17.67 20.73
1984 13.44 13.51 16.26 20.86
1985 12.73 10.19 10.30 12.06
1986 11.41 8.15 11.24 9.50
1987 9.87 9.40 10.58 14.93
1988 11.51 9.10 10.89
Source
Storage to January 1, 1988 Storage to April1, 1988 Storage After April1, 1988
Direct Flow
C.B.T. (Horsetooth)
Distribution
North Poudre Stockholders Fossi I Creek Stockholders Carry Over
Rental (Fossi I Creek)
Loss in storage & distribution
Dividends April6, 1988 May 4, 1988 May 26, 1988 June 8, 1988 July 6, 1988 August 3, 1988
Acre Feet Percentage
22,241 24.77
4,601 5.13
7,636 8.50
34,478 38.40
23,295 25.95
32,000 35.65
89,773 100.00
47,062 52.42
3,420 3.81
18,944 21.10
2,150 2.40
18,197 20.27
89,773 100.00
Acre Feet/Share 1.0 1.0 .5 3.0 1.5 .75 7.75
It was good to have a shop to work in during the cold weather, allowing the men to take care of the repairing and maintenance of equipment.
On three different occasions we attempted to trans- fer water from Halligan Reservoir to Park Creek, but cold weather, snow, and ice forced us to shut down. We needed to fill the lower reservoirs, and in order to prevent losing water down the North Fork, I hoped to get a head start on the snow melt by having Halligan low for reserve storage. We finally succeeded on the 4th of April. With the amount of time required to fill Park Creek and #15 reservoirs, I was afraid we wouldn't fill before irrigation season.
We started the system on May 9; however with rain, and then snow, the demand for irrigation water reduced enough for us to fill the reservoirs.
With the exception of a small flood on the west end, we had a hot, dry, and windy summer.
Much of the country suffered from the heat and drought, and farm produce prices rose considerably. It seemed the time had come for the farmers in the Cache La Poudre Basin to be able to realize a profit, and we appropriated water accordingly.
At the end of the irrigation season we had to replace the number one headgate on the Waverly Main. This gate is used to deliver water down to the #1 Reservoir (Miner's Lake).
Construction started on Clark's Lake in October, and I've included a few snapshots in the annual.
Woodrow Swinscoe, the Buckeye ditch rider, is retiring after 18 years. Cheerful, well liked by fellow employees, we'll miss his humor. Many happy days to ., you, Woody.
At this writing, December 1, the snow pack in the North Poudre water shed is comparable to a year ago.
NOTICE:
Change In Policy
Company policy changed on December 7, 1988 concerning pumping permits. Effective as of December 7, 1988, NEW pumping permits will require one (1) share of water to be owned and dedicated to the pump.
Current pump users must be in line by 1990.
Year Assmt Ac Ft Cost Per Yearly Interest Acre Foot Average
1909 $ 5.00 $ 22,029.05
1910 5.00 26,533.46
1911 4.00 21,351.13
1912 5.00 3.09 1.618 21,137.50
1913 6.00 2.87 2.091 26,683.07
1914 7.00 3.44 2.035 35,698.51
1915 7.00 3.09 2.265 2.00 39,715.38
1916 7.00 2.29 3.057 2.36 37,843.74
1917 7.00 3.15 2.222 2.39 33,341.79
1918 7.00 2.41 2.905 2.61 39,510.20
1919 8.00 1.14 7.018 3.80 38,383.15
1920 11.00 2.98 3.691 3.96 37,483.88
1921 8.00 3.74 2.139 3.94 36,672.49
1922 6.50 1.83 3.552 4.10 37,269.08
1923 6.50 4.31 1.508 2.72 38,713.11
1924 9.50 4.59 2.070 2.32 42,899.56
1925 12.00 2.52 4.762 2.97 42,232.10
1926 5.00 4.63 1.080 2.35 40,525.92
1927 8.00 3.92 2.041 2.49 41 '175.17
1928 8.50 4.59 1.852 2.43 37,054.95
1929 8.25 4.43 1.862 1.71 33,242.45
1930 8.25 3.09 2.670 2.11 31,879.06
1931 7.50 2.60 2.885 2.32 30,510.11
1932 7.00 1.37 5.109 3.13 29,314.38
1933 4.50 2.87 1.568 3.06 28,702.10
1934 5.00 1.37 3.650 3.30 28,773.75
1935 4.25 3.16 1.345 2.92 28,716.25
1936 6.00 2.07 2.899 2.37 28,863.61
1937 5.75 1.22 4.713 3.15 23,692.80
1938 6.75 3.21 2.103 2.76 23,626.89
1939 7.75 2.61 2.969 3.17 25,655.98
1940 7.25 0.75 9.667 4.86 21,808.42
1941 4.00 2.00 2.000 4.18 19,102.96
1942 6.25 3.90 1.603 4.06 18,030.56
1943 8.00 4.19 1.909 3.79 17,423.15
1944 7.25 3.07 2.362 1.97 16,208.69
1945 7.25 2.10 3.452 2.33 14,149.96
1946 7.25 2.00 3.625 2.84 12,668.32
1947 9.00 3.30 2.727 3.04 11,266.32
1948 13.00 2.16 6.019 3.96 11,420.83
1949 12.00 3.00 4.000 4.09 8,956.62
Year Assmt Ac Ft Cost Per Yearly Interest Acre Foot Average
1950 $ 12.00 1.80 6.667 4.85 $ 8,735.23
1951 12.00 2.62 4.580 5.32 6,457.13
1952 12.00 3.20 3.750 4.75 5,077.05
1953 14.40 4.51 3.193 4.55 4,366.54
1954 18.60 3.40 5.471 4.25 2,860.71
1955 18.00 3.20 5.62 54.5 11,950.61
1956 16.00 3.40 4.706 4.75 1,564.16
1957 9.00 6.50 1.385 4.30 116.10
1958 15.00 6.00 2.500 3.55
1959 14.50 5.80 2.500 2.77
1960 14.50 5.30 2.736 2.28
1961 14.50 6.00 2.417 2.54
1962 14.50 7.00 2.071 2.43
1963 14.50 5.50 2.636 2.47
1964 15.00 5.30 2.830 2.49
1965 16.00 5.00 3.200 2.68 96.66
1966 16.50 5.00 3.300 2.99 172.51
1967 17.00 4.50 3.778 3.28 216.81
1968 20.00 6.30 3.175 3.36 120.81
1969 20.00 5.50 3.636 3.47 1,164.37
1970 20.00 7.00 2.857 3.36 273.78
1971 20.00 8.00 2.500 3.04
1972 21.00 5.00 4.200 3.30 2,667.00
1973 21.00 6.00 3.500 3.26 2,877.00
1974 22.00 7.00 3.143 3.34
1975 26.00 7.00 3.714 3.64
1976 35.00 6.00 5.833 4.05 5,262.00
1977 45.00 4.80 9.375 5.52 8,267.00
1978 45.00 6.35 7.087 6.50 8,161.00
1979 45.00 6.70 6.716 7.25 13,852.00
1980 55.00 4.70 11.702 8.72 21,917.00
1981 80.00 6.75 11.852 9.34 12,057.00
1982 80.00 6.50 12.308 10.64 18,676.00 1983 100.00 10.50 9.524 11.35 25,097.00 1984 100.00 15.00 6.667 10.09 14,333.84
1985 100.00 9.00 11.111 9.50 9,157.20
1986 75.00 11.50 6.522 8.46 3,391.86
1987 75.00 7.50 10.000 8.57 156,421.00
1988 70.00 7.50 9.333 9.24 124,616.00
Total Interest Paid 1 ,630,191.82
HILL, HILL & MANGES, P.C.
Attorneys at Law A Professional Corporation Fort Collins, Colorado 80522
December 22, 1988
We have represented the North Poudre Irrigation Company for over the past 20 years. We have appreciat- ed and appreciate the opportunity these years have given us to work with Board members, the managers, and to become acquainted with many stockholders.
This is a report of the major activities by us on behalf of the Company in 1988.
In 1988, as of December 15th, we had spent 362.25 hours of time on North Poudre matters compared to in excess of 397 hours in 1987. The time is for a calendar year.
As to litigation: A quiet title action was brought against North Poudre by Kechters and others relating to a portion of boundaries on the northerly side of Fossil Creek Reservoir. An amicable settlement was worked out. It resolves the boundary line and provides for the building of a new fence by North Poudre. The settlement recognizes an easement for North Poudre on a temporary basis in the event of extraordinarily high water.
We have been preparing for and are about to bring condemnation action for the spillway needed for Clark Reservoir. Efforts by the Board, the Company officers, and our office to acquire the site by negotiation have failed.
During the year, a claim made by Elah and Margaret Hepler asserting damages were caused while replacing
the inlet pipe on Hinkley Reservoir was resolved.
Uncertainty in the insurance market continues. North Poudre is never certain what coverage will be available, and in what amounts. There has been no indication that it's possible to get increased liability coverage for reasonable amounts.
We spent time assisting in the legal process of bidding and awarding the work for the repairs of Clark Lake. That work is under way. The fall weather cooperated, providing an opportunity for rapid pro- gress.
It has as yet not been possible to find out whether or not Anheuser Busch is going to pay for some option arrangement with North Poudre for augmentation water from Fossil Creek Reservoir.
There have been the usual activities in the nature of subdivision or exemption requests. From time to time, North Poudre will receive notice of a subdivision request near a ditch or a reservoir. For example: The Cherry Heights subdivision which would surround Reservoir No. 10, north of Fort Collins, is still alive. The developers have asked for an additional year to meet County requirements and the "For Sale" sign still remains on the property. A recent Minor Residential Development request has been made to create several parcels around North Poudre Reservoir No. 9, located just west of the Intersection of Colorado Highway No. 1 and Waverly Road.
No recent significant developments have been no- ticed in the City of Thornton's efforts to use the water rights it has acquired in this area. We can expect a prolonged court battle when the matter reaches that stage.
The Mountain Range Shadows' subdivision located
1
south of Fossil Creek Reservoir is continuing to work on its sewage effluent problems. This affects North ) Poudre since this effluent goes into Fossil Creek Reservoir. The solution seems to be for this subdivision to tie in to the South Fort Collins Sanitation District.
This hasn't happened yet, but it might become a reality in 1989.
The proper documentation for stock transfers and lost stock certificates are regular problems for stock- holders in the North Poudre office. Please be sure you know where your certificate is located. A lost instru- ment bond is expensive. Encourage anyone handling a transfer to find out in advance about requirements and charges.
One of the major, positive occurrences in 1988 was the paying off of the indebtedness to the United States Government on Park Creek Reservoir. The United States decided it was advantageous for it to receive money now rather than annual payments on the loan and a small amount of interest over a long period of time.
Thus, North Poudre had the opportunity to pay off its debt to the United States by paying $164,321.25 to satisfy a debt of approximately $676,134.35. The needed )~··', funds were acquired temporarily from First Interstate Bank of Denver and then from the Colorado Water Conservation Board. We coordinated the legal end, to be certain deadlines were met and that paper work was in order.
Our farm area was fortunate in 1988, considering the severe drought in the Midwest and the South. Yet as the year ends, we have not heard or read of any optimistic economic forecast for our State in 1989. We hope 1989
1
)
J
is a healthy and prosperous year for the North Poudre stockholders notwithstanding the absence of hopeful predictions. It is more and more of a struggle for everyone to carry on their work, contain costs, pay the bills and have something left.
Respectfully submitted, HILL, HILL, & MANGES, P.C.
Alden T. Hill Alden V. Hill
Richard B. Manges
Gerald W. Laska, Associate Attorneys at Law
160 West Mountain Avenue Fort Coli ins, Colorado 80522 Telephone: 482-3683
PHILIP SCHNORR
Philip Schnorr served as a director of The North Poudre Irrigation Company from 1964-1985. He died January 15, 1989.
His experience and common sense served this company well.
Words are inadequate to describe the loss of our friend. He had a feel for what could and should be done. If he objected to the method of handling some problem, then one was wise to take a second look because Phil's reaction was usually right. With his strength of character, there was fairness, a willingness to look you in the eye, listen to your reasons, and the wisdom to change his mind. He didn't carry grudges. He worked unselfishly for the good of this Company, and of the area.
We shared laughs together and countless noontime hands of "Liar's poker." It seemed like Phil would always be there to give benefit from his judgment. Only the pain from the cancer and the tears in his eyes told you he wasn't winning the battle.
He was a good man and a good friend.
Respectfully submitted, Harlan Seaworth
Alden V. Hill
Board of Directors
North Poudre Irrigation Company
Wellington, Colorado November 18, 1988 We have audited the accompanying balance sheets .of the North Poudre Irrigation Company as of October 31, 1988 and 1987, and the related statements of income and cash flows for the years then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to ex- press an opinion on these financial statements based on our audits.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes exa- mining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the North Poudre Irrigation Compa- ny at October 31, 1988 and 1987, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting prin- ciples.
Respectfully submitted,
~, tVAK~r ,_, ~mk
Brock, Watkins & Schommer Certified Public Accountants
MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
North Poudre Irrigation Company Wellington, Colorado
Balance Sheet October 31, 1988 and 1987
ASSETS
Current Assets 1988 1987
Cash in the Bank 137,673 173,730
Investments (Note 1) 103,392
Assessments Receivable 49,677 48,161
Notes Receivable (Note 2) 2,417 2,204
Prepaid Expense 11,984 5,983
Total Current Assets 305,143 230,078
Property Assets (Note 1)
Land 266,260 266,260
Construction in Progress 204,504 56,496
Priorities, Water Rights, & Easements 673,804 673,804 Ditches and Reservoirs 9,249,518 9,249,518 Buildings and Improvements 113,473 112,689
Radio and Office Equipment 44,872 39,444
Machinery and Equipment 167,089 167,089
Transportation Equipment 57,224 51,580
Total 10,776,744 10,616,880
Less: Accumulated Depreciation (2, 148,7 45) (2,038, 733)
Total Property Assets 8,627,999 8,578,147
Other Assets
Stock of Other Companies (Note 1) 17,941 17,941
Notes Receivable (Note 2) 21,910 24,327
Total Other Assets 39,851 42,268
Total Assets 8,972,993 8,850,493
The accompanying notes are an integral part of these financial statements.
Exhibit A
LIABILITIES
Current Liabilities 1988
Notes Payable (Note 3) 36,017
Accounts Payable- Trade 76,642
Accounts Payable-
Water Purchase (Note 5) 60,000
Accrued Interest 63,709
Accrued Payroll Taxes 486
Accrued Wages 9,954
Total Current Liabilities 246,808 Long- Term Liabilities (Note 3)
Notes Payable 2,588,659
Total Liabilities 2,835,467
STOCKHOLDERS' EQUITY Paid in Capital
Common Stock (1 0,000 Shares Authorized,
$50 Par Value, 10,000 Shares Issued,
9,996 Outstanding) 500,000
3,450 Additional Paid In Capital
Total Paid in Capital Retained Earnings
Beginning Balance Net Income
Ending Balance Total Paid In Capital
and Retained Earnings Less: Treasury Shares at Cost Total Stockholders' Equity Total Liabilities
and Stockholders' Equity
503,450
5,068,787 565,436 5,634,223
6,137,673 (147) 6,137,526
8,972,993
1987 42,685 19,554 60,000 62,146 340 8,200 192,925
3,085,478 3,278,403
500,000 3,450 503,450
4,871,319 197,468 5,068,787
5,572,237 (147) 5,572,090
8,850,493
North Poudre Irrigation Company Wellington, Colorado Statement of Operations
For The Years Ended October31, 1988 and 1987 Operating Revenues
Assessments
Recreational Leases (Note 4) Stock Transfer Fees
Other Operating Income Reimbursements Total Operating Revenue Operating Expense
Repairs and Maintenance, Buildings Ditches, Reservoirs, & Equipment Machine Hire
Gas and Oil Weed Control
Water Purchased and Assessments Engineering Fees
Salaries and Wages Payroll Taxes
Ditch Riders' Expense Insurance
Office and Other Expense Vehicle and Other Taxes Directors' Fees and Expense Utilities and Telephone Mileage
Legal Fees Accounting Fees Employee Benefits Depreciation
Total Operating Expenses Income From Operations
1988 700,282 62,470 5,840 46,252 7,299
822,143
75,278 182 9,907 11,462 76,385 425 203,890 20,462 11,717 49,215 10,551 2,449 26,478 11,792 6,628 26,039 2,600 15,749 110,012 671,220 150,923
The accompanying notes are an integral part of these financial statements.
Exhibit B
1987 750,296 66,272 5,040 116,075 6,499
944,182
46,088 924 8,295 17,277 71,153 1,033 185,564 18,167 10.804 45,593 10,841 1,925 22,961 11,518
7,404 34,743 2,600 15,533 105,192 617,615 326,567
North Poudre Irrigation Company Wellington, Colorado
Statement of Operations (continued) For The Years Ended October 31, 1988 and 1987 Other Income (Expense)
Interest Income Oil and Gas Royalties Interest Expense
Total Other Income (Expense)
Net Income Before Extraordinary Item Extraordinary Item
Loan Payoff Discount (Note 7) Net Income
1988
8,142 19,174 (124,616) (97,300) 53,623
511,813 565,436
The accompanying notes are an integral part of these financial statements.
Exhibit B
1987
11,469 15,853 (156,421) (129,099) 197,468
197,468
North Poudre Irrigation Company Wellington, Colorado Statement of Cash Flows
For The Years Ended October 31, 1988 and 1987
Cash Flows from Operating Activities Net Income
Non-cash Items Included in Net Income:
Loan Payoff Discount Depreciation
Net Decrease (Increase) in Accounts Receivable, Prepaid Expense, .Accounts Payable, and Accrued
Expenses Net Cash Provided by
Operating Activities
Cash Flows From Investing Activities Collection of Loans Receivable Purchase of Equipment and
Property Assets Net Cash Used by Investing
Activities
Cash Flows From Financing Activities Proceeds From Short-Term Debt Proceeds From Long-Term Debt Repayment of Short-Term Debt Repayment of Long-Term Debt Net Cash Provided by Financing
Activities
Net Increase (Decrease) in Cash Beginning Cash
Ending Cash
1988 565,436
(511 ,813) 110,012
53,034
216,669
2,204 (159,864)
(157,660)
197,521 195,433 (197,521) (187, 107)
8,326 .67,335 173,730 241,065
The accompanying notes are an integral part of these financial statements.
Exhibit C
1987 197,468
105,192
(132,379)
170,281
1,995 (561 ,768)
(559,773)
126,267 (42,685)
83,582 (305,910)
479,640 173,730
North Poudre Irrigation Company Wellington, Colorado Notes to Financial Statements
October 31, 1988
Note 1 - Significant Accounting Policies
Property Assets - Property assets are recorded at cost. De- preciation is being taken by the straight-line method over the following useful lives.
Item
Ditches and Reservoirs Buildings and Improvements Radio and Office Equipment Machinery and Equipment Transportation Equipment Change in Presentation
Life 100 years
20years 10 years 10 years 4-5 years
The October 31, 1988, financial statements include state- ments of cash flows showing cash provided and used by operating, investing, and financing activities in place of statements of changes in financial position showing changes in working capital as presented in prior years.
Amounts for October 31, 1987, have been restated to conform with the October 31, 1988, presentation.
Investments - Investments consist of a Certificate of Deposit stated at cost.
Income Taxes - The Company is incorporated under the laws of the State of Colorado as a tax exempt corporation;
therefore, no provision for income taxes has been made.
Stock of Other Companies - Investments in the stock of other irrigation companies is stated at cost.
North Poudre Irrigation Company Wellington, Colorado Notes to Financial Statements
October 31, 1988
Note 2- Note Receivable Detail Source
Smelker, Gerald & Lela, 10°/o interest, due in monthly payments of $396, prin- cipal due in full October 11, 1995, secured by 1st deed of trust.
Note 3 - Note Payable Detail Source
Colorado Department of Natural Re- sources (Colorado Water Conservation Board), 5°/o interest, payable in 11 annual installments of $19,782 begin- ning June 15, 1989. Collateralized by the Park Creek Reservoir and water rights.
Colorado Department of Natural Re- sources (Colorado Water Conservation Board), 5°/o interest, payable in 40 annual installments of $77,612 begin- ning May 1, 1985. Collateralized by an undivided one-half interest in the Fossil Creek dam structure.
Colorado Department of Natural Re- sources (Colorado Water Conservation Board), 5°/o interest, payable in 40 annual installments of $67,192 begin- ning May 1, 1987. Collateralized by an undivided one-half interest in the No. 15 Reservoir dam structure.
Current Long- Term
2,204 24,327
Current Long- Term
11 ,566 152,755
13,403 1 ,270, 775
11 ,048 1 '122,297
North Poudre Irrigation Company Wellington, Colorado
Notes to Financial Statements October 31, 1988
Note 3 continued -
Source Current Long- Term
Colorado Department of Natural Re- sources (Colorado Water Conservation Board), 5°/o interest, payable in 40 annual installments of $29,140 begin- ning January 1 of the year that con- struction of the project is completed.
Amount represents advances on a total
commitment of $500,000. 42,832
Total 36,017 2,588,659
Note 4 - Lease Income
Lease income is derived from the lease of reservoirs and land to various organizations for recreational and agricul- ture uses. All leases are normally annually renewable over a 5 year period with the exception of the following:
1) Luther Harris, lease of Fossil Creek Reservoir through 11/8/91 at $10,500 per year.
2) Ski and Camp Club, lease of No. 15 Reservoir through 11/1/91 at $10,000 per year.
Note 5- Water Allotment Agreement
The Company entered into an agreement December 5, 1945, with the Northern Colorado Water Conservancy District for the annual purchase of 40,000 acre feet of water, or any such portion that may be delivered, at $1.50 per unit.
Payment is due May 1 of every year and is secured by an irrevocable levy of assessment on the capital stock of the Company. Payments shall continue until the delivery system is paid for and thereafter for operating and
North Poudre Irrigation Company Wellington, Colorado Notes to Financial Statements
October 31, 1988 Note 6- Legal Actions and Asserted Claims
The Company is currently involved in several lawsuits and asserted claims. Legal actions have not progressed to a point where liability, if any, to the Company can be determined.
Note 7- Loan Payoff Discount
The U.S. Department of Interior, Bureau of Reclamation offered the Company a discount for early repayment of the loan on Park Creek Reservoir. The principal amount of the debt, $676,134, was paid off by payment of $164,321, August 9, 1988, resulting in a discount to the company of
$511,813. The early payment amount of $164,321 was financed through the Colorado Water Conservation Board as detailed fully in Footnote 3.
THE FOLLOWING PHOTOGRAPHS ARE OF THE CLARK'S LAKE REHABILITATION IN PROGRESS
Project Sign
Spillway
Outlet Pipe
Pouring Outlet, Base Slab
Outlet Base Slab
Breach Fill
Outlet Bedding
