Phone: 970.352.0222
Fax: 970.352.0226
info@newcache.com
8:00 - 4:00 M-F
8:00 - 1:00 Sat
(Sat hours during delivery season only)
33040 Railroad Ave
P.O. Box 104
Lucerne, CO 80646

Assessments

Background Information

Assessments are voted on and approved by the stockholders at the annual meeting for the particular company. Assessments vary from company to company depending on the financial needs. There are different types of assessments.

Stock Assessments

Stock assessments are levied against the shares of stock in the company. Every share is assessed the same amount. The stock assessment is usually billed in February. The following companies levy stock assessments:

  • The New Cache La Poudre Irrigating Company
  • The Cache La Poudre Reservoir Company
  • The Union Lateral Irrigating Company
  • The Cooke Irrigation Company

The stock assessment is voted on and approved by the stockholders of each company at the annual meeting for that company. For instance, say the stock assessments for Company A were set at $50.00 per share at the annual meeting. Each stockholder in Company A will be assessed $50.00 times the number of shares owned. If Stockholder A owns six shares, he will be assessed $300.00 (six shares times $50.00/share).

Delivery Assessments

Delivery assessments are levied based on the number of acre-feet of foreign water delivered. The canal companies that have direct flow decrees divert and delivery the river water at no extra charge, other than the stock assessments, to its stockholders (thus the term "free" water). All water that is foreign to the canal is charged a delivery assessment. Under our systems all reservoir water is foreign to the canals. The following companies levy delivery assessments:

  • The New Cache La Poudre Irrigating Company

The total amount of money that each company receives from delivery and surcharge (see surcharge assessments) assessments varies. This amount is voted on and approved by the stockholders of each company at the annual meeting for that company. For instance, say the delivery and surcharge assessments for Company A were set at a total of $50,000 for the year. Each stockholder that took delivery of foreign water will be assessed a delivery assessment based on the number of acre-feet of foreign water they used. If a total of 20,000 acre-feet of foreign water was delivered by Company A, then the amount assessed to the stockholders would be $2.50/acre-foot ($50,000.00 divided by 20,000). If Stockholder A runs 100 acre-feet of reservoir water, he will be assessed $250.00 (100 acre-feet times $2.50/acre-foot).

Surcharge Assessments

Surcharge assessments are levied based on the number of acre-feet of water delivered above what is allowed by the number of shares a stockholder owns. The following companies levy surcharge assessments:

  • The New Cache La Poudre Irrigating Company

The surcharge assessment is calculated daily during both river and reservoir deliveries. The surcharge assessment policy was voted on and approved by the stockholders of these companies. The policy reads:

One share of capital stock (in the respective company) shall represent the right to carry one-fourth (1/4) of a second foot of water in the canal plus or minus the canal shrink and provided there is room in the canal and the Board of Directors shall have power to make additional assessments on deliveries above one-fourth of a second foot per share of capital stock.

The total amount of money that each company receives from delivery (see delivery assessments) and surcharge assessments varies. This amount is voted on and approved by the stockholders of each company at the annual meeting for that company. Each stockholder that took delivery of river or reservoir water that exceeded their pro rata share of water will be assessed a surcharge assessment based on the number of acre-feet of water over and above a ¼ second foot per share on a daily basis. The surcharge assessment is calculated from the delivery assessment. The New Cache La Poudre Irrigating Company has set the surcharge assessment at twice the delivery assessment on a per acre-foot basis. If the delivery assessment is $2.50/acre-foot then the delivery assessment would be $5.00/acre-foot for The New Cache La Poudre Irrigating Company. If Stockholder A owns 4 shares of The New Cache La Poudre Irrigating Company the pro rata share of water he can run is 1 right (4 shares times ¼ second feet). If he orders 1.5 rights he would be over his pro rata share by ½ right or 1 acre-foot per day. He would be assessed a surcharge assessment of $5.00 for each acre-foot over the pro rata share.

Special Assessments

The following companies currently levy special assessments:

  • The Cache La Poudre Reservoir Company

The Cache La Poudre Reservoir Company special assessment was begun in 1979 to pay for dam repairs. The assessment was levied for a period of 40 years and is a pro rata assessment.

Late Assessments

Late assessments are levied on accounts that are delinquent. The following companies levy late assessments:

  • The New Cache La Poudre Irrigating Company
  • The Cache La Poudre Reservoir Company
  • The Union Irrigating Company
  • The Cooke Irrigation Company

The late assessment is based on the outstanding balance in the account. The percentage rate used to calculate the late assessment is voted on and approved by the stockholders of each company at the annual meeting for that company.