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THE ' NORTH POUDRE IRRIGATION COMPANY
1992
-.. · .. !
DIRECTORS
Manuel Pineda ... .... ... ... Fort Collins, Colorado Dennis Marsh ... Fort Collins, Colorado Duane Aranci ... ... ... .... Fort Collins, Colorado Dorothy Schild ... ... ... ... Fort Collins, Colorado Dennis Bode ... ... ... Fort Collins, Colorado
OFFICERS
Manuel Pineda ... ... ... President Duane Aranci ... ... ... ... Vice President Robert L. Stieben ... ... 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
3. Registration of proxies with credentials committee 4. Report of credentials committee
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
1992 was almost "Never Summers" year. The Cache La Poudre valley started out with an 85 percent of average snowpack on hand. April and May started out dry, warm and below average precipitation. June, July and August were very cool, wet and above precipitation. The fall harvest season was beautiful, a very warm and dry September and October. A very cool November, wet snow on the 21st, a cold and cloudy December, and winter was here before it started. As usual, it was a very unusual year for the record. The erratic weather again taxed the capabilities of the North Poudre Irrigation Company, especially its employees in accomplishing their main task, delivering the water to the stockholders-but they did it! From the North Poudre Board and stockholders, we say "THANKS."
This is the sixth year that a president of this company will make a report on the progress of the "Halligan Reservoir Agreement" between the North Poudre Irrigation Company and the City of Fort Collins. We are pleased to report that meetings, discussions and exchanges of drafted proposals continue very diligently and purposefully toward that goal. An extension of this agreement has again been requested by the City to the 31st of January, 1993, which North Poudre has granted. The North Poudre Board continues to maintain a very positive and optimistic view that we can reach an agreement in the coming year.
During the early part of 1992 North Poudre, along with other water users and water interests from all over the State of Colorado, combined their resources to help pass some legislation that was very important to the Company. Statements and testimony were presented to the Colorado Water Conservation Board on reservoir rehabilitation, water conservation measures, and for studies of water transfers within the state of Colorado and to various House and Senate legislative committees to help get Senate Bill 92-87 passed. For the North Poudre Irrigation Company the passage of Senate Bill 92-87 meant that we were eligible and authorized for a loan of state funds for up to $1,800,000 from the Colorado Water Conservation Board for the rehabilitation of Reservoirs #5 and #6 at a low interest rate and very favorable terms. The rehabilitation of these two reservoirs will make available approximately 17,000 acre feet of water for the benefit of North Poudre, for irrigation exchanges, recreation and possibly augmentation waters for the Cache La Poudre basin. Engineering studies and surveys of the reservoir areas are currently in progress and being conducted by our engineer, Duane Smith of TEC Engineering.
Approximately $16,500 has been spent on the project to date.
Some discussions have been conducted and correspondence written in 1992 with individuals and others expressing some interest in acquiring augmentation waters from Fossil Creek Reservoir.
Litigation continues on the helicopter spraying incident reported to you last year. It continues to take up the time of our attorney, the manager and the Board. We are hopefully looking to resolve this matter sometime in 1993.
The Cactus Hill Ditch Company became an integral part of The North Poudre Irrigation Company system in late 1992 after the Cactus Hill Ditch stockholders paid the North Poudre Irrigation Company $65,000 for the Company to take over all operations and maintenance of the ditch after certain conditions were met. This action was reported to you in the Fall Newsletter. We will welcome any comments or questions at the annual meeting.
Problems arising out of The the North Poudre lrrigtion Company rights- of-way and easements along canals, ditches and reservoir high water lines, fences and boundaries also continue to take up a lot of the time of the Board, the manager and legal counsel. Most of these boundary issues have to do with the subdividing of farmland along canals and around reservoirs, which is a matter of educating the new people of the rights of North Poudre and its easements.
The subject of water uses, minimum water and stream flows, water rights and the transfer of those water rights is not only of a local concern to The North Poudre Irrigation Company and Northern Larimer and Weld Counties, it is also a very much publicized political and economic issue within the State of Colorado. Now the Federal government, through some of its various agencies, is also making its presence felt and asserting itself in some very important water issues. I will refer to them briefly in this report. The U.S.
Forest Service claim for minimum stream flows will impact and affect some Front Range municipalities and irrigation companies. The United States Reserved Rights Case is still pending. North Poudre is watching developments of the proposed Wild and Scenic Designation of the North Fork of the Poudre River because of the impact it may have on the expansion of Halligan Reservoir. The wetlands issue, along with the concerns of agricultural runoff water quality and point source pollution, will be issues that come under the Clean Water Act. North Poudre will try to address these issues with you.
The North Poudre Irrigation Company, as a member of the Cache La Poudre Water Users Association, along with other water users and interests and the Northern Colorado Water Conservancy District, are addressing and opposing the claims being made by the various Federal agencies concerning water in Northern Colorado. We must continue to stay involved.
On a closer-to-home legal water issue, in September Judge Behrman,
in District Court-Water Division I, heard the final arguments and briefs presented by the City of Thornton and its water right transfer case and those water users in the Northern District who opposed the transfer. The Judge stated he would make a decision sometime late in 1992 or 1993.
The Board has decided to compile a history of the Company as we approach our 92nd year in operation as the North Poudre Irrigation Company. We have retained Dr. Jim Hansen and his staff, Wayne Latham and Anne Hilfinger, from the History Department at CSU, to do the research·
of the Company and to also help organize and compile important data and records of the Company. The project will also involve interviews with past directors and other senior citizens and stockholders, as well as collecting any photographs, pictures and past newspaper reports of North Poudre activities.
The North Poudre Irrigation Company again acted as host for groups of foreign students from CSU that are studying irrigation companies' operations, irrigation projects and water administration. One other local and national group was presented with a brief history of North Poudre, along with some of the local water transfer problems now occurring in Northern Colorado.
The North Poudre Irrigation Company Board, the staff and employees continue to build and improve on their knowledge of new issues relating to the Company and its operations by attending water seminars and meetings sponsored by water interests from Northern Colorado and CSU, by attending chemical, herbicide and equipment workshops sponsored by Larimer and Weld Counties and other Colorado state organizations. We must and will continue to keep abreast of all the new agricultural, water operational, environmental and political issues as they are introduced and implemented. More and more people are starting to take notice of the most valuable natural resource we have-WATER! Become involved! Please come to your Annual Meeting. We hope to see you all there.
Respectfully submitted, Manuel Pineda, President Board of Directors
The North Poudre Irrigation Company
RECOMMENDED 1992 ASSESSMENT
$ 8.00 for Water assessment 21.00 for CWCB loan retirement
2.50 for Weed control
43.50 for operation and maintenance
$75.00
$45.00 per share due and payable April 1, 1993, interest at 11120/o per month charged after May 1, 1993.
$30.00 per share due and payable October 1, 1993, interest at 1112°/o per month charged after November 1 , 1993.
No water will be delivered on delinquent accounts.
Total assessments of $75.00 per share are due April1, 1993 on two shares or less.
Despite the extremes of hot, cold, wet, and dry, 1992 turned out to be a good year for most crops grown under the North Poudre system. Once again rainy weather in July damaged most barley that was grown for brewing purposes. Timely rains throughout the growing season together with the mountain water supply provided adequate moisture for all crops.
This year we were spared the heavy rains that caused so much damage in 1991.
The #1 diversion structure on Park Creek that was destroyed by the floods of 1991 was replaced before irrigation season. The inlet channel to Hinckley Reservoir was cleared of brush and trees and the channel was reshaped and lined with rip-rap. Each year there are concrete structures that need to be repaired or replaced and ditches and laterals to clean and reshape.
Just a reminder that there is an answering machine on the office telephone that is turned on during irrigation season, evenings and weekends when the office is closed. It does not take messages but it does give current information. We encourage water users to make use of this service, expecially when water season begins and when water deliveries have been interrupted because of storms or other unforeseen events. Of course the office staff is availabe to answer questions during business hours.
As we enter into the winter of 1992-1993 we have experienced a very cold December. It has snowed many times however the accumulation has not been out of the ordinary. There is plenty of time to build up the snowpack in the mountains.
Year Assmt. Ac.Ft/Share Cost per
delivered Ac.Ft.
1985 100.00 4.31 23.20
1986 75.00 5.65 13.27
1987 75.00 4.03 18.61
1988 70.00 4.80 14.58
1989 75.00 4.25 17.65
1990 75.00 4.48 16.74
1991 75.00 4.12 18.20
1992 75.00 4.11 18.20
Source
Storage - November 1, 1991 North Fork
Munroe Canal
Direct deliveries from Horsetooth
Distribution
Storage - November 1 , 1992 Stockholders
Rental from #5
Evaporation & distribution loss
Fossil Creek Reservoir
Preferred Rights Exchanged for CBT Regular exchanges Rental
CBT Quota 600/o
Dividends
April 27, 1992 May 27, 1992 June 3, 1992 July 8, 1992
Acre Feet
15,455 34,773 23,190 6,063 79,481
20,523 40,575 1,450 62,548 16,933 79,481
3,420 3,390 2,850 3,500 13,160 24,000
Acre Feet Per Share
3.0 .5 1.5 .5 5.5
ANNUAL PRECIPITATION IN INCHES
Year Wellington Cactus Buckeye Livermore
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
1989 14.26 10.59 11.98 10.20
1990 14.93 11.97 18.22 21.30
1991 11.07 10.50 14.00 18.6
1992 13.70 14.52 13.85 14.05
HILL & HILL, P.C.
Attorneys at Law A Professional Corporation Fort Collins, Colorado 80522
December 21, 1992
We have now represented The North Poudre Irrigation Company for the last twenty-five years. We appreciate the challenges which are regularly presented as North Poudre carries out its business. North Poudre is fortunate in having Directors and a manager who devote substantial time and energy to the needs and demands of the company. Our professional relationship with Richard B. Manges ended in the fall of 1992, and we reduced our attorney staff by ending the employment of associate attorney, John T. Vap, and adding associate attorney, Douglas A. Glover.
Alden V. Hill attends the regular Board meetings and special meetings when requested.
Through December 9, 1992, we spent 500 hours on matters relating to the Company. This was an increase of 177 hours from a lawsuit against North Poudre; work on gathering boundary information as North Poudre begins efforts to rehabilitate Reservoirs #5 and #6; and on the Halligan agreement with the City of Fort Collins. The work on the Halligan agreement with the City of Fort Collins was delayed by the untimely death of Denver attorney, John U. Carlson, who was special counsel to the City in this matter. Carlson died suddenly in October of 1992 at the age of 52.
Terms of this agreement are still under discussion as of this date.
The lawsuit mentioned above is pending in the District Court of Larimer County against North Poudre and Orion Helicopter for damages for personal injuries, claimed as a result of required aerial spraying for noxious weeds near Clark Lake. This claim is still being defended by the Insurance Company of North America. Liability and damages are being vigorously contested. Because of the reservation of rights by the insurance company, we do not know what the financial impact will be on the stockholders of North Poudre. It's probable the case will be brought to a conclusion in the trial court this year.
In 1992, North Poudre acquired the assets of the Cactus Hill Ditch Company and was paid by this company to take on the responsibility of operation and maintenance. We helped work out the legal arrangement to complete this transaction.
There continues to be many small subdivisions or land divisions occurring around ditches and reservoirs in the North Poudre system. There were at least 14 such matters that ended up in North Poudre's mail bag in the 1992 year and took the time of the Manager, the Board, and legal counsel in looking at the effect of these land use changes on North Poudre's property rights. Whether there will be more or fewer of such subdivision requests in the future is uncertain, especially when we consider
the change of County Commissioner's control from Republican to ~
Democrat.
The North Poudre Board has discussed making some augmentation water available out of Fossil Creek Reservoir, although no firm arrangements have been completed. There seems to be an increasing need for augmentation water in our area.
A small parcel of ground along the south side of Fossil Creek Reservoir was sold by North Poudre to the County of Larimer under the threat of condemnation. It seems likely the county road south of Fossil Creek Reservoir will be improved and will become another main access to South College Avenue and the City of Fort Collins.
Lost stock certificates and poorly prepared transfer documents continue to consume quite a bit of time. Stockholders will save themselves expense by being certain they have their stock certificates.
The Thornton water transfer case is still pending in the District Court of Weld County awaiting a decision. North Poudre spent some time on this matter. Tremendous expense and time on this matter was spent by the Northern Colorado Water Conservancy District.
Time of the Board, its officers, and our office was spent in expressing North Poudre's concerns because of a potential impact in the future of the Forest Service's determination to compel minimum stream flows in its permit process, without paying compensation for the water it would be acquiring. What will ultimately happen in this clash is uncertain.
North Poudre also spent some time providing input as the State of Colorado Water Quality Commission considers imposing standards which would affect agricultural runoff water and wetlands created or affected.
The principal efforts are made through legal counsel for the Cache La Poudre Water User's Association.
As this year ends, the power in Washington changes from the Bush Administration to the Clinton administration. It's probable there will be more
emphasis on environmental matters. This in turn affects agriculture. The country continues the struggle with the recession. There must be an effective effort to balance the budget and reduce the deficit. There is no shortage of impatience and intolerance in the world and in our own area and country. In spite of all the problems, international, national, and local, we hope 1993 will be a productive and successful year for the stockholders and employees of The North Poudre Irrigation Company.
Very truly yours, HILL and HILL, P.C.
Alden T. Hill Alden V. Hill Douglas A. Glover Attorneys at Law
160 West Mountain Avenue P.A. Box 421
Fort Collins, Colorado 80522 Telephone: 482-3683
Board of Directors
North Poudre Irrigation Company Wellington, Colorado
November 18, 1992
We have audited the accompanying balance sheets of the North Poudre Irrigation Company as of October 31, 1992 and 1991, and the related statements of income and retained earnings, and cash flows for the years then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits 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 examining, 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 Company at October 31, 1992 and 1991, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.
Respectfully submitted,
Brock, Watkins & Schommer Certified Public Accountants
North Poudre Irrigation Company Wellington, Colorado
Balance Sheets October 31, 1992 and 1991
ASSETS Current Assets
Cash and Cash Equivalents (Note 1) Assessments Receivable
Note Receivable (Note 2) Prepaid Expense
Total Current Assets
Property Assets (Notes 1 and 3) Land
Construction in Progress
Priorities, Water Rights, and Easements Ditches and Reservoirs
Buildings and Improvements Radio and Office Equipment Machinery and Equipment Transportation Equipment
Total
Less: Accumulated Depreciation
Total Property Assets
Other Assets
Stock of Other Companies (Note 1) Note Receivable (Note 2)
Total Other Assets Total Assets
1992
163,610 38,299 3,626 9,406
214,941
336,070 18,038 693,804 11,043,578 113,473 56,606 204,536 97,991 12,564,096
(2,578,928)
9,985,168
17,941 9,325
27,266
10,227,375
The accompanying notes are an integral part of these financial statements.
Exhibit 1
1991
91,057 25,582 3,280 7,912
127,831
336,070
693,804 10,693,578 113,473 45,146 266,755 84,183 12,233,009 (2,502,394)
9,730,615
17,941 12,953
30,894
9,889,340
LIABILITIES
Current Liabilities
Notes Payable (Note 3) Accounts Payable - Trade Accounts Payable -
Water Purchase (Note 4) Accrued Interest Payable Payroll Withholding Payable Accrued Compensated Absences Accrued Salary and Wages Total Current Liabilities
Long-Term Liabilities (Note 3) Notes Payable
Contingent Liability (Note 5) Total Long-Term Liabilities Total Liabilities
1992 50,013 21,707 60,000 76,424 7,830 9,680 225,654
3,109,787
3,109,787 3,335,441 STOCKHOLDERS' EQUITY
Paid in Capital
Common Stock (1 0,000 Shares Authorized,
$50 Par Value, 10,000 Shares Issued, 9,995.25 Shares Outstanding 1992,
9,995.75 Shares Outstanding 1991) 500,000 Additional Paid in Capital (Note 6) 418,450
Total Paid in Capital 918,450
Retained Earnings 5,977,581
Total Paid In Capital
and Retained Earnings 6,896,031
Less: 4.25 Treasury Shares at Cost
(4.75 Shares 1992, 4.25 Shares 1991) (4,097)
Total Stockholders' Equity 6,891,934
Total Liabilities
and Stockholders' Equity 10,227,375 Exhibit 1
1991 47,632 36,150 60,000 77,518 618 8,927 9,821 240,666
3,159,800
3,159,800 3,400,466
500,000 3,450 503,450 5,986,821
6,490,271
(1 ,397) 6,488,874
9,889,340
North Poudre Irrigation Company Wellington, Colorado
Statements of Income and Retained Earnings For the Years Ended October 31, 1992 and 1991
Operating Revenues 1992 1991
Assessments 750,240 750,277
Other Operating Income 118,498 118,417
Recreational Leases 91,900 75,410
Reimbursements 5,692 8,209
Stock Transfer Fees 4,120 5,960
Total Operating Revenues 970,450 958,273
Operating Expense
Salaries and Wages 247,698 232,575
Repairs and Maintenance, Buildings,
Ditches, Reservoirs, and Equipment 156,926 108,608
Depreciation 141,283 130,122
Water Purchased and Assessments 76,325 117,450
Legal Fees 47,581 31,912
Insurance 32,395 30,116
Payroll Taxes 21,634 20,443
Employee Benefits 21,080 17,104
Weed Control 19,295 35,239
Ditch Riders' Expense 17,026 15,143
Directors' Fees and Expense 14,970 15,468
Office and Other Expense 13,799 12,434
Gas and Oil 12,482 12,102
Utilities and Telephone 12,141 12,127
Engineering Fees 6,626 10,330
Vehicle and Other Taxes 4,099 6,263
Machine Hire 3,471 2,193
Mileage 2,695 1,695
Accounting Fees 2,600 2,600
Total Operating Expense 854,126 813,924
Income From Operations 116,324 144,349
The accompanying notes are an integral part of these financial statements.
Exhibit 2
North Poudre Irrigation Company Wellington, Colorado
Statements of Income and Retained Earnings For the Years Ended October 31, 1992 and 1991
Other Income (Expense) 1992 1991
Gain on Sale of Assets 16,000 1,581
Interest Income 4,219 5,646
Oil and Gas Royalties 14,597 18,448
Interest Expense (160,380) (156,216)
Total Other Income (Expense) (125,564) (130,541)
Net Income (Loss) (9,240) 13,808
Retained Earnings-Beginning of Year 5,986,821 5,973,013
Retained Earnings-End of Year 5,977,581 5,986,821
The accompanying notes are an integral part of these financial statements.
Exhibit 2
North Poudre Irrigation Company Wellington, Colorado
Statements of Cash Flows
For the Years Ended October 31, 1992 and 1991
Cash Flows From Operating Activities 1992 1991
Net Income (Loss) (9,240) 13,808
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities:
Depreciation 141,283 130,122
Gain on Sale of Equipment (16,000) (1 ,581) Decrease (Increase) in Assets:
Assessments Receivable (12,717) (2,492)
Other Accounts Receivable 55,066
Accrued Interest Receivable 1,179
Prepaid Expenses (1 ,494) (322)
Increase (Decrease) in Liabilities:
Accounts Payable (14,443) (1 09,473)
Accrued Expenses (2,950) 7,050
Net Cash Provided by Operating Activities 84,439 93,357 Cash Flows From Investing Activities
Proceeds From Sale of Equipment 16,000 1,581 Collection of Loans Receivable 3,282 2,971 Purchase of Equipment and
Property Assets (45,836) (516,727)
Net Cash Used by Investing Activities (26,554) (512,175) Cash Flows From Financing Activities
Capital Contribution 65,000
Purchase of 112 Share Treasury Stock (2,700)
Proceeds From Short-Term Debt 131,000 261,000
Proceeds From Long-Term Debt 224,171
Repayment of Short-Term Debt (131 ,000) (261 ,000) Repayment of Long-Term Debt (47,632) (42,678) Net Cash Provided by Financing Activities 14,668 181,493 Net Change in Cash and Cash Equivalents 72,553 (237,325) Cash and Cash Equivalents -
Beginning of the Year 91,057 328,382
Cash and Cash Equivalents -
End of Year 163,610 91,057
Exhibit 3
North Poudre Irrigation Company Wellington, Colorado
Statements of Cash Flows
For the Years Ended October 31, 1992 and 1991
Supplemental Cash Flow Information
Amounts paid in cash for interest expense during the periods were
$161 ,473 for 1992 and $150,768 for 1991.
Noncash Activities
During 1992, the Company accepted the Cactus Hill Ditch System from the Shareholders of the Cactus Hill Ditch. The estimated fair market value of $350,000 was recorded as an asset of the Company and a corresponding amount charged to contributed capital.
The accompanying notes are an integral part of these financial statements.
Exhibit 3
North Poudre Irrigation Company Wellington, Colorado
Notes to Financial Statements October 31 , 1992
Note 1 - Summary of Significant Accounting Policies
Operations- The Company provides irrigation water for agriculture uses to approximately 600 shareholders in the Northern Colorado front range. The Company business office and maintenance shop facilities are located in Wellington, Colorado.
Property Assets - Property assets are recorded at cost for assets purchased and fair market value for donated assets. Depreciation 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
Life 100 years 10-20 years 10 years 10 years 5-10 years Cash Equivalents - All highly liquid investments purchased with a maturity of three months or less are considered to be cash
equivalents.
Income Taxes - The Company is incorporated under the laws of the State of Colorado as a Section 501 (c)(5) 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.
Note 2 - Note Receivable Detail
Source Current Long- Term Total
Smelker, Gerald & Lela, 1 oo;o interest, due in monthly payments of $396, principal due in full October 11, 1995,
secured by 1st deed of trust. 3,626 9,325 12,951
Note 3 - Note Payable Detail
Source Current Long-Term Total
Colorado Department of Natural Resources (Colorado Water Conservation Board), 50/o interest, payable in 11 annual installments of $19,782 beginning June 15, 1989. Collateralized by the Park Creek Reservoir and
water rights. 14,059 100,409 114,468
Colorado Department of Natural Resources (Colorado Water Conservation Board), 50/o interest, payable in 40 annual installments of $19,847 beginning June 15, 1992. Collateralized by an undivided one half interest in
the No. 2 dam structure. 2,960 334,772 337,732 Colorado Department of Natural
Resources (Colorado Water Conservation Board), 50/o interest payable in 40 annual installments of $77,612 beginning May 1, 1985. Collateralized by an undivided one half interest in the
Fossil Creek dam structure 16,291 1,21 0,120 1 ,226,411 Colorado Department of Natural
Resources (Colorado Water Conservation Board, 50/o interest, payable in 40 annual installments of $67,192 beginning May 1, 1987. Collateralized by an undivided one half interest in the
No. 15 Reservoir dam structure 12,789 1,075,206 1,087,995
Note 3 - Note Payable Detail (Continued)
Source Current Long-Term Total
Colorado Department of Natural Resources (Colorado Water Conservation Board), 50/o interest, payable in 40 annual installments of $23,574 beginning May 1, 1990. Collateralized by an undivided one half interest in the
Clark Lake dam structure. 3,914 389,280 393,194
Total 50,013 3,109,787 3,159,800
The following is a summary of the annual debt service requirements:
Year Principal Interest Total
1993 50,013 157,993 208,006
1994 52,514 155,492 208,006
1995 55,140 152,866 208,006
1996 57,897 150,109 208,006
1997 60,792 147,214 208,006
1998-2031 2,883,444 2,629,333 5,512,777
Totals 3,159,800 3,393,007 6,552,807
Note 4 - 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 maintenance charges.
Note 5 - Contingent Liability
The Company is currently a defendent in a lawsuit, Civil Action No.
91-CV-14. The Company's insurance carrier has denied coverage in this case but is defending the Company under a reservation of rights.
Potential financial liability to the Company, if any, can not reasonably be estimated at this time.
Note 6 - Additional Paid in Capital
During the fiscal year, the Company reached an agreement with the Cactus Hill Ditch shareholders to obtain the Cactus Hill Ditch System.
The Cactus Hill Ditch shareholders transferred ownership of the assets of the system and a cash payment of $65,000 to the Company. The fair market value of the assets, $350,000, and the cash payment have been recorded as additional paid in capital. This resulted in a total increase to paid in capital of $415,000.
Another liability for North Poudre. Fossil Creek Inlet Canal - 1992
President Manuel Pineda with Governor Roy Romer at the signing of SB-92-87 May 27, 1992
Inspection of the North Fork Diversion structure. Constructed in the early 1920's.
L-R: Dennis Marsh, Duane Aranci, Dennis Bode and contractor, Blair Kiefer.
November 1992
Summer 1992
North Poudre Board inspection of wash-out at Fossil Creek Inlet area.
