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HomeMy WebLinkAbout790419.tiff KENNL III F. LIND ATTORNEY AT LAW TILE L./LOX Bl ILDINU 1011 ELEVENTH AVENUE P.O.BOX 3L• GREELEY, COLORADO 80631 TELEPIIONE O031 35 3-2 321 June 1 , 1979 The Board of County Commissioners Weld County Greeley , Colorado 80631 Re : Colorado Landfill , Inc . Dear Commissioners : Accompanying this letter is the documentation required pursuant to the application requirements as related to the County Development Revenue Bond Policy of Weld County . Specifically , the accompanying documents are intended to comply with Section 3 of Ordinance No . 25 , as amended . Please let these documents serve as an application by Colorado Landfill , Inc . for development bonds . Attached hereto is the application fee of $250. 00 . Thank you for your cooperation and attention in this matter . Very)pily you s/, , Ke neth F . Lind KFL : sb 790419 A PROFESS'( I,^ CORPORATION ATTORNEYS AT LAW BIB AMERICAN NATIONAL BANK BUILDING cos SEVENTEENTH STREET DENVER, COLORADO 80202 JAMES G WILLSON, JR TELEPHONE (303) 825-1284 IN AS JCIATION WITH WILLIAM 0 LAMM WILLSON LAMM EDSTROM & STOWE DAVID A. EDSTROM June 1 , 1979 ATTORNEYS AT LAW ERICK D. STOWE CHEYENNE,WYOMING MARY ANNE BRAYMER (307( 635-0221 DEE P WISOR BARBARA E. BONDS' •LICENSED ONLY IN WYOMING Board of County Commissioners Weld County, Colorado Re : Industrial Development Bonds for Colorado Landfill , Inc. Gentlemen: I have been asked to offer my opinion as to the qualifi- cation of the landfill project within the intent of the County and Municipality Development Revenue Bond Act ( the "Act" ) . The legis- lative intent of the Act is set forth at Subsection 29-3-102( 2) Colorado Revised Statutes 1973 , as amended , as follows : " ( 2 ) It is the further intent of the general assembly to authorize counties and municipal- ities to finance , refinance , acquire , own , lease , improve and dispose of properties to the end that . . . more adequate facilities for dis- posing of sewage and solid waste . . . may be provided . . . " It is my opinion that the legislature did intend that solid waste be a subject of financing under the Act. If you have any questions or comments , please do not hesitate to write or call . Very truly your Erick D. Stowe EDS:ema pc : Kenneth Lind , esq. Jack Bruggeman - Coughlin & Co. COUGH Ar 'S.t._3S INVESTMENT BANKERS Member Midwest Stock Exchange, Inc. 1200 First National Bank Bldg. Denver, Colorado 80202 • (303) 623.3000 June 1, 1979 Board of County Commissioners Weld County, Colorado P.O. Box 459 Greeley, CO 80631 Re: Industrial Development Bonds for Colorado Landfill, Inc. Gentlemen: Coughlin & Co. , Inc. and E. J. Pittock and Co. have been requested by Colorado Landfill, Inc. to review the feasibility of selling industrial development bonds for a landfill project located within your County: Given the proper structuring of the issue and market conditions at the time of sale of the bonds, it is our opinion that the bonds can be sold to investors. At this point in time, it is our intention to work with Colorado Landfill, Inc. towards a suitable structure which will accomplish the financing of the project. If you have any questions in this regard, we will be pleased to answer them. Very truly yours, COUG11LIN & CO. , INC." / 7a,/k A. Bruggeman 2./sistant Vice Presidenj v JAB/dsc cc: E. J. Pittock Erick Stowe 3 . 3 ( a) A history of the applicant including a description of operations . This requirement is waived as there is no historical description of operations of a landfill by Lynn Keirnes . Colorado Landfill , Inc . is a new company . Please see 3 . 3 ( e) and 3 . 3 ( c ) for some history of Colorado Landfill Inc . ' s predessor in operations . 3.3 (b) Historical financial statistics of applicant for the last five (5) years or for the entire time it has conducted business. If the applicant is proposing co-signers or guarantors of the bond issue, this same historical financial data must be supplied for the co-signers or guarantors. Waived - new company See attached unaudited financial statements for predecessor f; entity, Weld Landfill, Inc. , for the period December 31, 1976 through August 31 , 1978. • • • 1i WELD LANDFILL INC. FINANCIAL STATEMENTS (Unaudited) Year Ended August 31 , 1978 ' I I • TABLE OF CONTENTS Page Disclaimer of Opinion 1 EXHIBIT A - BALANCE SHEET 2 EXHIBIT B - STATEMENT OF STOCKHOLDERS' EQUITY 3 EXHIBIT C - STATEMENT OF EARNINGS 4 EXHIBIT D - STATEMENT OF CHANGES IN FINANCIAL POSITION 5 Schedule 1 - Schedule of Operating Expenses 6 NOTES TO FINANCIAL STATEMENTS 7 GPlCLEY MAE'ONLL PLAZA Gn(ELE♦ COLOPADO • Mr. Ralph Rohweder Weld Landfill Inc . Greeley, Colorado • The accompanying balance sheet of Weld Landfill Inc . , as of August 31 , 1978 , and the related statement of stockholders' equity, statement of earnings and supporting schedule, and statement of changes in financial position for the year then ended were not audited by us and , accordingly, we do not express an opinion on them. October 10 , 1978 - 1 - 'KHOLDERS' EQUITY amissiesCURRENT ASSETS Cash $ 2 , 182 Accounts receivable (Note 2) 56 ,052 Less: Allowance ford 3 ,504 Unexpired insurance 3,709 Receivable from stockhoi 2 ,670 $ 68, 117 PROPERTY (Note 1[C.]) Note 3) 110 ,394 Landfill sites 39,694 Water rights 150 ,088 zed ding, BUILDINGS AND EOUIPMEI\ (Note 1[CJ) 2 , 100 Building 66 , 810 Machinery 27, 086 Office equipment 95 ,996 1 OTHER ASSETS J I, Deferred income taxes (N 1 TOTAL ASSETS $ 314 ,201 The Notes to Financia • - - - (Unaudited) Year Ended August 31 , 1978 Common Stock No. of Contributed Retained Shares Amount Capital Earnings Total Balance , August 31 , 1977 2 , 000 $ 2 , 000 $ 64,910 $ 34 , 847 $ 101 ,757 • Capital contributed by stockholder upon purchase of ' common stock 100 100 1 ,900 - 2 ,000 Dividends paid - - - (31 ,200) (31 ,200) Net earnings for the year ended ' August 31 , 1978 • (EXHIBIT C) - - - 23,439 23,439 Balance , August 31 , 1978 2 , 100 $ 2 , 100 $ 66 , 810 $ 27 , 086 $ 95 ,996 The Notes to Financial Statements are an integral part of this exhibit. - 3 - JiHiLMt.l'•II Vi +..9.1(1VIIVl5J (Unaudited) Year Ended August 31 , 1978 Per Cent of Sales SALES 59 d 'r.1 �n,z. Landfill fees $ 258,430 100 .0% OPERATING EXPENSES (Schedule 1) 219 ,329 84 . 9 EARNINGS FROM OPERATIONS 39 , 101 15 . 1 OTHER INCOME Royalties and interest 1 ,940 . 8 41 ,041 15 .9 OTHER EXPENSES Interest 18,729 7 .2 EARNINGS BEFORE TAXES ON INCOME 22 ,312 8.7 TAXES ON INCOME Currently payable 2 ,670 1 . 0 Deferred tax benefit (3 ,797) (1 .5) (1 , 127) (. 5) NET EARNINGS $ 23 ,439 9 .2% The Notes to Financial Statements are an integral part of this exhibit. - 4 - _.. �• (Unaudited) Year Ended August 31 , 1978 SOURCES OF WORKING CAPITAL Net earnings (EXHIBIT C) $ 23 ,439 Add: Expenses deducted which do not require the use of working capital Depletion - dump sites 6 , 144 Depreciation 55 , 757 Deferred taxes (Note 1[D]) • (3 ,797) Working capital provided by operations $ 81 ,543 Issue of common stock 2 ,000 Loan from stockholders (Note 4) 30 ,030 113, 573 APPLICATION OF WORKING CAPITAL Purchase of machinery and equipment 35 ,866 ' Repayment of loan • 43 ,298 • Current maturities of long-term debt 8,434 Construction of building 7, 101 Dividends paid 31,200 125 , 899 DECREASE IN WORKING CAPITAL $ (12 ,326) CHANGES IN COMPONENTS OF WORKING CAPITAL Increase (decrease) in current assets: • Cash $ 5 , 761 • Accounts receivable 5 ,006 ' ' Unexpired insurance 420 Receivable from stockholder 2 ,000 13 , 187 Increase (decrease) in current liabilities: Accounts payable (464) Payroll and payroll taxes payable 195 Accrued interest and property taxes 678 Income taxes payable 2 ,670 Notes payable - due within one year 22, 434 25,513 DECREASE IN WORKING CAPITAL $ (12 ,326) The Notes to Financial Statements are an integral part of this exhibit. - 5 - (Unaudited) Year Ended August 31 , 1978 Per Cent of Sales Auto expenses $ 867 . 3% Advertising 333 . 1 Depreciation 55 , 757 21 . 7 Depletion - landfill sites 6 , 144 2 .4 • Donations 355 . 1 Dues and subscriptions 381 . 1 Employee benefits 2 , 159 . 8 Gas and oil 14 ,548 5 . 7 Insurance 3,854 1 .5 • Legal and a: counting 2 ,440 - .9 Miscellanec 's 2 ,225 .9 Officer's salaries 16 , 800 6 . 5 Office supplies 1 ,668 . 6 Repairs and maintenance • 27,477 10. 6 Rent and leases 9 ,636 3. 7 Salaries 63 , 316 24. 6 Taxes - payroll 7 ,222 2 . 8 Taxes - other 1 , 020 . 4 Utilities 3, 127 1 . 2 Total operating expenses $ 219 ,329 84.9% The Notes to Financial Statements are an integral part of this schedule . - 6 - !MOILS 1U 1IN/nt,I Mill_EMrNmT5 (Unaudited) Year Ended August 31 , 1978 Note 1 - Summary of Significant Accounting Policies: (A) Accounting Method: The financial statements are prepared according to the generally accepted accrual method of accounting . (B) Accounts Receivable: The Company provides fo; doubtful accounts based on an estimate of total accounts receivable which management deems to be uncollectible . (C) Property, Buildings and Equipment: The provisions for depreciation and depletion have been calculated using the straight-line method. Depreciation rates are based on the three to seven year estimated useful lives of the equipment. Depletion of landfill sites is based on an estimated useful life of fifteen years with a residual value of $40,400. Depreciation and depletion expenses were $55 ,757 and $6 , 144 , respectively, for the year ended August 31, 1978. Expenditures for maintenance and repairs are charged to expense as incurred whereas major property replacements and betterments which extend the life of the assets are capitalized and subsequently depreciated . When assets are sold or abandoned , the cost and accumulated depreciation and depletion are removed from the accounts and any resulting gain or loss is recognized. (D) Income Taxes: For financial reporting purposes, the Company is depreciating certain equipment over shorter lives than for income tax purposes . The excess of depreciation reported in the financial statements over depreciation reported in the income tax return for the year ended August 31 , 1978 was $20, 883 . The provision for deferred income taxes results from this timing difference . Prior to the fiscal year ended k 71st 31 , 1978, the Company was being taxed as a "Sub-Chapter S" corporation . For the fiscal year end September 30, 1978, the Company was taxed as a regular corporation. The Company follows the flow-through method of accounting for investment tax credits and jobs tax credits . The income tax liability at August 31 , 1978 was reduced by $3 ,095 of investment tax credits and $7 ,212 of jobs tax credits . - 7 - Plv1tS?I(Tr MN C.I on nuc (Unaudited) Year Ended August 31 , 1978 Note 2 - Notes Payable - Due Within One Year: United Bank of Greeley, 10%, unsecured $ 14 ,000 Current portion of long-term debt (Note 3) 42 ,052 $ 56 ,052 Note 3 - Notes Payable - Due After One Year: United Bank of Greeley, 10%, payable in monthly installments of $4 ,542 . Secured by property and equipment, all outstanding shares of capital stock, assignment of life insurance policy and all leases , contracts and permits . $ 143 ,446 Lenora Hall (stockholder's sister) , 10%, unsecured, repayment terms indefinite 9 ,000 152 ,446 Current portion of long-term debt 42 ,052 $ 110 , 394 Note 4 - Notes Payable - Stockholder: Ralph Rohweder, 7%, unsecured , repayment terms indefinite $ 39 ,694 Note 5 - Leases: The Company has negotiated oral leases with certain landowners for the use of their property as landfill sites . Terms of the leases are indefinite and annual rentals are not determinable. Lease expense applicable to these leases was $9 ,328 for the year ended August 31 , 1978. - 8 - } WELD LANDFILL INC. FINANCIAL STATEMENTS (Unaudited) Seven Months Ended August 31 , 1977 ( I i ANDERSON &WHITNEY. CERTIFIED PUBLIC ACCOUNTANTS. GREELEY. COLORADO _ _- ♦ n ii • • TABLE OF CONTENTS Page Disclaimer of Opinion I EXHIBIT A - BALANCE SHEET 2 EXHIBIT B - STATEMENT OF STOCKHOLDERS' EQUITY 3 - EXHIBIT CSTATEMENT OF EARNINGS 4 EXHIBIT D - STATEMENT OF CHANGES IN FINANCIAL POSITION 5 Schedule I - Schedule of Operating Expenses 6 NOTES TO FINANCIAL STATEMENTS 7 � v r ` I( i 1 ANDERSON &WHITNEY.CERTIFIED PUBLIC ACCOUNTANTS. GREELEY,COLORADO C 13 le pr 00101011116" C•Rt t.LEY, COIORAI>O 006,31 ' is II I ' } Mr. Ralph Rohweder Weld Landfill Inc. Greeley, Colorado The accompanying balance sheet of Weld Landfill Inc. , as of August 31 , 'i 1977 , and the related statement of stockholders' equity, statement of earnings and supporting schedule, and statement of changes in financial position for the + seven months then ended were not audited by us and, accordingly, we do not I I express an opinion on them. dyie6ya goiV r j October 3 , 1977 i I I it IiI III II ! r� - 1 - ► 'O1O:c 'J (Unaudited) August 31 , 1977 ASSETS CURRENT ASSETS Cash $ 27 ,142 Accounts receivable $ 15,253 Less: Allowance for doubtful accounts 305 14 ,948 Unexpired insurance 1 ,301 $ 43 , Accumulated Net PROPERTY Cost Depletion Book Value • Dump sites $ 132 , 100 $ 4,592 $ 127 ,508 Water rights 47,000 - 47,000 $ 179, 100 $ 4,592 174 ,. Accumulated Net BUILDINGS AND EQUIPMENT Cost Depreciation Book Value Construction in progress - building $ 1 ,530 -• 1 ,530 Machinery 108 ,919 13 ,629 95,290 Office equipment 1 &600 168 1 ,432 • $ 112 ,049 $ 13 ,797 98,; TOTAL ASSETS $ 316, The Notes to Financial Statements are an integral part of this exhibit. II • - 2 - ANDERSON & WHITNEY.cenri ;,G//IrpyiAAr., r-..„.,•..: a rr...!atir x,sw b^M« s...er,.,we„pa..4+wx,Ms. ••; .� ".• .. LIABILITIES AND STOCKHOLDERS' EQUITY :URRENT LIABILITIES Accounts payable $ 2, 646 Payroll and payroll taxes payable 3 ,309 Accrued interest and property taxes 3 ,031 Current portion of long-term debt (Note 2) 33 ,618 $ 42 ,604 )THER LIABILITIES Notes payable - due after one year (Note 2) 162 , 126 Notes payable - stockholder (Note 3) 9 ,664 171 ,790 TOCKHOLDERS' EQUITY (EXHIBIT B) Common stock, par value $1; authorized 50,000 shares , issued and outstanding, 2 ,000 shares 2 ,000 Paid-in capital in excess of par value of common stock 64,910 Retained earnings 34, 847 101 ,757 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 316 , 151 ,JUNTANTS. CREELEY. COLORADO W e Y . lEVn Y y:q�y 07 ^no S'TATt:1ti![_N'r C I Sfcx_Yitc?l, IL VIII? (Unaudited) 1f Seven Months Ended August 31 , 1977 Paid-In Common Stock Capital in Excess No. of of Par Value of Retained Shares Amount Common Stock Earnings Total Initial issuance of common stock, $1 par value; 50, 000 shares authorized 2 ,000 $ 2 ,000 $ - $ - $ 2 ,000 Capital contributed by stockholders upon purchase of common stock - - 64 ,910 - 64,910 Net earnings for the seven months ended August 31 , 1977 (EXHIBIT C) - - - 34,847 34,847 Balance, August 31 , 1977 2 ,000 $ 2 , 000 $ 64,910 $ 34,847 $ 101 ,757 The Notes to Financial Statements are an integral part of this exhibit. - 3 - 1: ANC=PSQ? &V/HITNEY. ct•-•:,.t, P i0:': ♦ . :'.v-.r 1. ,•Et'J r. .".L.w•Y. _- ` ^ �� 444014, 14, +Z.of f A:xt».c✓4nwaw;wawn r.1040BA aSOWSP •bw ,,aral.rA� rSTA1 1 r 'I NC CI' I'ARNING5_ i (Unaudited) 3 Seven Months Ended August 31 , 1977 Per Cent of Sales SALES Dump fees $ 138 ,889 100.0 % OPERATING EXPENSES (Schedule 1) 92 ,658 66 .7 EARNINGS FROM OPERATIONS 46 , 231 33.3 OTHER INCOME 1 ,294 9 Royalties and interest 47 , 525 34 .2 OTHER EXPENSES 305 .2 I Bad debts 12 ,373 8 .2 Interest 12 ,678 9. 1 NET EARNINGS BEFORE INCOME TAXES 34 , 847 25 . 1 PROVISION FOR INCOME TAXES (Note 4) NET EARNINGS $ 34 , 847 25 . 1 % Earnings per share $ 17 .42 The Notes to Financial Statements are an integral part of this exhibit. 9 N AN DERSO &WHITNEY. CERTIFIED PUBLIC ACCOUNTANTS. GREELEY. COLORADO STATEMENT 01' I '!I\Nc:I:S IN FINANCIAI. Pc?:itti ' (Unaudited) Seven Months Ended August 31 , 1977 SOURCES OF WORKING CAPITAL Net earnings (EXHIBIT C) $ 34, 847 Add: Expenses deducted which do not require the use of working capital Depletion - dump sites 3 ,568 Depreciation 12 ,878 Working capital provided by operations $ 51 ,293 Loan from bank 61 ,000 Loan from stockholder 9 ,664 121 ,957 APPLICATION OF WORKING CAPITAL Purchase of machinery and equipment 76 ,549 Repayment of loan 24 ,256 Current maturities of long-term debt 33 ,618 134,423 DECREASE IN WORKING CAPITAL $ (12,466) CHANGES IN COMPONENTS OF WORKING CAPITAL Increase (decrease) in current assets: Cash $ 22 , 255 Accounts receivable 6,690 Unexpired insurance (143) 28,802 Increase in current liabilities: Accounts payable 2 , 646 Payroll and payroll taxes payable 2 ,720 Accrued interest and property taxes 2 ,284 Current portion of long-term debt 33, 618 41 , 268 DECREASE IN WORKING CAPITAL $ (12 ,466) The Notes to Financial Statements are an integral part of this exhibit. - 5 - ANDERSON &WHITNEY. CERTIFIED PUBLIC ACCOUNTANTS. GREELEY. COLORADO ._...r•. ,qt.,.:.N;JM yr. .r ...v.- ^•+ ..IM v.I.Mry*AN..:JJ{Ida« .,..atkli*4.1',.n.n IISAS W+MWf44 M...w Tr pr. . Sc. he;dull• ,+1 t I,er tin_A Exll'mses ._ (Unaudited) Seven Months Ended August 31 , 1977 Per Cent of Sales Auto expenses $ 167 . 1 % Advertising 100 . 1 f Depreciation 12 ,878 9 .3 Depletion - dump site 3,568 2 .6 Donations 141 . 1 Dues and subscriptions 258 . 2 Employee benefits 1 ,396 1 . 0 Gas and oil 7 ,028 5 . 1 Insurance 2 ,015 1 . 5 Legal and accounting 2 ,709 1 .9 Miscellaneous 1 ,209 .9 Office supplies 914 . 7 Repairs and maintenance 8,491 6. 1 I Rent and leases 6 ,525 4.7 Salaries 39 ,265 28. 2 Taxes - payroll 3,485 2 .5 Taxes - other 1 ,420 1 . 0 Utilities 1 ,089 . 7 I Total operating expenses $ 92 ,658 66 .7 % I The Notes to Financial Statements are an integral part of this schedule. 6 . ANDERSON Et WHITNEY. CERTIFIED PUBLIC ACCOUNTANTS. GREELEY. COLORADO o I nAtMIW4u4NYywwxiunxebo..„Lvw ., flown.,..,.s otioNt+ll ll rs "! 1 , MI: . iti'i NUrl:S 1'U FINANCIAL STATEMI.NTS (Unaudited) - Seven Months Ended August 31 , 1977 Note 1 - Summary of Significant Accounting Policies: Accounting Method: The financial statements are prepared according to the generally accepted accrual method of accounting. Accounts Receivable: The Company provides for doubtful accounts based on an estimate of total accounts receivable which management deems to be uncollectible. Property, Buildings and Equipment: The provisions for depreciation and depletion have been calculated using the straight-line method. Depreciation rates are based on the three to seven year estimated useful lives of the equipment. Depletion of dump sites is based on an estimated useful life of i fifteen years with a residual value of $40, 400. Depreciation and depletion expenses were $12 ,878 and $3 ,568, respectively, for the seven months ended August 31 , 1977. Expenditures for maintenance and repairs are charged to expense as incurred whereas major property replacements and betterments which extend the life of the asset are capitalized and subse- quently depreciated. When assets are sold or abandoned, the Il cost and accumulated depreciation and depletion are removed from the accounts and any resulting gain or loss is recognized. Note 2 - Notes Payable: United Bank of Greeley, 10%, payable in monthly installments of $4 ,542 . Secured by property and equipment, all outstanding shares of capital stock, assignment of life insurance policy and all leases , contracts and permits Lenora Hall (stockholder's sister) , 10% $ 186 ,744 unsecured, repayment terms indifinite e _ 9 , 000 Current portion of long-term debt 195,744 33 ,618 Note 3 - Notes Payable - Stockholder: I________162 126 Ralph Rohweder, 7% , unsecured, repayment terms indefinite $ 9 ,664 Ii - - 7 - 401.4010400100* ,rr, „.rau<< s . ,.. "".nysr, l ir+,w :tN+aw,l;r♦, : r.x. as-c'!*'rk4t •" .l \. LLU IANLsI I. MC . Ii 1: NOTES TO FINArICIAL STATEMENTS - Continued (Unaudited) Seven Months Ended August 31 , 1977 Note 4 - Income Taxes: The Company has elected to be taxed under the provisions of "Sub- Chapter S" of the Internal Revenue Code, which in general, has the effect of taxing income to the individual stockholders. There- fore, no provision is made for corporation income tax liabilities . Equipment of the Company is being depreciated using accelerated methods for income tax purposes and the straight-line method for financial reporting purposes . The excess of accelerated deprecia- tion over straight-line depreciation for the seven months ended August 31 , 1977 was $3 , 620. Note 5 - Leases: The Company has negotiated oral leases with certain landowners for the use of their property as landfill sites . Terms of the leases are indefinite and annual rentals are not determinable. Lease expense applicable to these leases was $6,525 for the seven months ended August 31 , 1977. Note 6 - Organization: The Company was organized as a Colorado Corporation on February 1 , 1977 and has adopted a fiscal year ending on August 31 . - 8 - ANDERSON &WHITNEY. CERTIFIED PUBLIC ACCOUNTANTS GREELEY. COLORADO Pa +JMW.+w.r t WELD LANDFILL ' (A Proprietorship) FINANCIAL STATEMENTS (Unaudited) Six Week Period Ended December 31 , 1976 I 1 ANDERSON & WHITNEY CERTIFIED PUBLIC ACCOUNTANTS GREELEY NATIONAL PLAZA GREELEY. COLORADO 80631 I 1 l , ,f74t.mitebe '10001104.100 TABLE OF CONTENTS Page Disclaimer of Opinion 1 EXHIBIT A - BALANCE SHEET 2 EXHIBIT B - STATEMENT OF PROPRIETOR'S EQUITY 3 EXHIBIT C - STATEMENT OF EARNINGS 4 EXHIBIT D - STATEMENT OF CHANGES IN FINANCIAL POSITION 5 NOTES TO FINANCIAL STATEMENTS 6 JI II !i I. 4004 ANDER!,0tJ S WHITNEY crRnrlru riinuc ACCOUNTANTS GnEri nAIIONAL PLAZA GREELEY. COLORADO 80631 Mr. Ralph Rohweder Weld Landfill Greeley, Colorado The accompanying balance sheet of Weld Landfill , a proprietorship, as of December 31 , 1976, and the related statement of proprietor's equity, statement of earnings and statement of changes in financial position for the six week period then ended were not audited by us and, accordingly, we do not express an opinion on them. January 22 , 1977 _ 1 _ L.ANL)F11.1, i:;:_ii 1BIT 11 {A Proprietorship) BALANCE SHEET (Unaudited) December 31 , 1976 ASSETS CURRENT ASSETS Cash $ 9 ,405 . 34 Accounts receivable 9,736 . 42 Unexpired insurance 1 , 588 .39 $ 20, 730. 15 Accumulated Net PROPERTY Cost Depletion Book Value Dump sites $ 132 , 100 . 00 $ 512 . 00 $ 131 , 588 . 00 Water rights 47 , 000 . 00 - 47 000 . 00 $- 179, 100 . 00 $ 512 . 00 178, 588 .00 j Accumulated Net EQUIPMENT Cost Depreciation Book Value Machinery and equipment $ 35 , 281 .47 $ 737 . 00 $ 34 , 544 . 47 Office equipment 800 . 00 13 . 00 787 . 00 • $ 36, 081 . 47 $ 750 . 00 35 , 331 . 47 TOTAL ASSETS $ 234 , 649 . 62 LIABILITIES AND PROPRIETOR'S EQUITY M � CURRENT LIABILITIES Note payable - bank (Note 2) $ 150 , 000. 00 Payable to Weld County Landfill, Inc. (Note 3) 9 , 810 . 17 Accrued payroll 432 . 69 Payroll taxes payable 1 , 1 71 . 74 Accrued interest 559 .43 $ 161 , 974 . 03 OTHER LIABILITIES Note payable - other (Note 4) 9 , 000 . 00 PROPRIETOR'S EQUITY Ralph H . Rohweder, capital 63 , 675 . 59 TOTAL LIABILITIES AND PROPRIETOR'S EQUITY $ 234 , 649 . 62 The Notes to Financial Statements are an integral part of this exhibit. - 2 -- �� alteaffl ` w1:[._P. LANDFILL EXHIBIT B '.1 CA-Proprietorship) STATEMENT OF PROPRIETOR'S EQUITY (Unaudited) Six Week Period Ended December 31 , 1976 I CAPITAL Original investment, November 19 , 1976 $ 60, 722 .39 Contributions 4 62 . 1 2 $ 61 , 184 . 51 DRAWING Net earnings for the six week period ended December 31 , 1976 (EXHIBIT C) 3 , 752 . 83 Withdrawals (1 ,261 .75) 2, 491 . 08 Balance, December 31 , 1976 $ 63, 675 .59 1 The Notes to Financial Statements are an integral part of this exhibit. • • 11 t• WOO. amo•OmIlwwwww°111°°"-"almem.mwsl"liwimnwia."." ' \V}.1.I1 I_11f`'1)I'II.L EXHIBIT C (A Proprietorship) STATEMENT OF EARNINGS (Unaudited) Six Week Period Ended December 31 , 1976 DUMP FEES $ 16 , 411 . 58 ' OPERATING EXPENSES Depletion - dump sites $ 512 .00 Depreciation 750. 00 • Employee benefits 200 . 57 Gas and oil 1 , 027 . 96 Insurance - life 144 . 00 Insurance - property 465 . 00 Interest..expense 1 , 67'8 . 30 Legal and accounting 343 . 10 Miscellaneous 323 . 67 Office supplies 131 . 60 Payroll taxes 297 . 34 Repair and maintenance 587 . 33 Rent and leases 1 , 572 . 46 Salaries 4 , 421 . 78 Taxes and licenses 153 .04 Utilities 50 . 60 12 , 658 . 75 NET EARNINGS $ 3 , 752 .83 { The Notes to Financial Statements are an integral part of this exhibit. . ill • wt:I.p LANDFILL EXHIBIT D (A Proprietorship) STATEMENT OF CHANGES IN FINANCIAL POSITION (Unaudited) Six Week Period Ended December 31 , 1976 SOURCES OF WORKING CAPITAL Net earnings $ 3 , 752 . 83 Add: Expenses deducted which do not require the use of working capital Depletion - dump sites 512 . 00 Depreciation 750 . 00 Working capital provided by operations $ 5 , 014 . 83 Contribution of cash by Proprietor to begin operations 4 , 722 . 39 Capital contributions by Proprietor 462 . 12 10, 199 . 34 APPLICATION OF WORKING CAPITAL Purchase of machinery and equipment 181 .47 Withdrawals by Proprietor I , 261 . 75 1 , 443 . 22 INCREASE IN WORKING CAPITAL $ 8, 756. 12 FINANCING AND INVESTING ACTIVITIES NOT AFFECTING WORKING CAPITAL Purchase of property and equipment to begin operations with $56, 000 capital contribution, $150, 000 bank loan and $9, 000 loan from other sources $ 215 , 000. 00 CHANGES IN COMPONENTS OF WORKING CAPITAL Increase (decrease) in current assets: Cash $ 9 , 4Q5 .34 Accounts receivable 9 , 736. 42 Unexpired insurance 1 , 588 . 39 Net increase in current assets 20, 730 . 15 Increase (decrease) in current liabilities: Payable to Weld County Landfill, Inc . 9 , 810 . 17 Accrued payroll 432 . 69 Payroll taxes payable 1 , 171 . 74 Accrued interest 559 . 43 Net increase in current liabilities 11 , 974 . 03 INCREASE IN WORKING CAPITAL $ 8 , 756 . 12 The Notes to Financial Statements are an integral part of this exhibit. - 5 - WELD LANDFILL (A Proprietorship) NOTES TO FINANCIAL STATEMENTS (Unaudited) Six Week Period Ended December 31 , 1976 Note 1 - Summary of Significant Accounting Policies: Accounting Method: The financial statements are prepared according to the generally accepted accrual method of accounting . In accordance with the generally accepted method of presenting proprietorship financial statements , the financial statements do not include any salary to the Proprietor or reflect his obligation for income taxes on the net income of the Proprietorship. Trade Accounts Receivable: The company does not provide for an allowance for doubtful accounts . Doubtful accounts are written off and charged against income at the time the Proprietor deems them uncollectible. Property and Equipment: The provisions for depreciation and depletion have been calculated using the straight-line method . Depreciation rates are based on the three to seven year estimated useful lives of the equipment. Depletion of dump sites is based on an estimated useful life of fifteen years with a residual value of $40 ,400. Expenditures for maintenance and repairs are charged to expense as incurred whereas major property replacements and betterments which extend the life of the asset are capitalized and subse- quently depreciated . When assets are sold or abandoned , the cost and accumulated depreciation and depletion are removed from the accounts and any resulting gain or loss is recognized. Note 2 - Notes Payable - Bank: Amount United Bank of Greeley, 10 . 50%, due 2/15/77 , secured by property and equipment $ 150 , 000 . 00 Note 3 - Payable to Weld County Landfill, Inc. : The payable represents the Company's liability to the previous owner (Weld County Landfill, Inc.) for the accounts receivable balance at the November 19 , 1976, purchase date. Payments are due on the payable as the accounts receivable are collected . kg O&M 1411"Saillaktiiiiabligafiliblilla0041ArnaPN WELD LANDFILL II (A Proprietorship) NOTES TO FINANCIAL STATEMENTS - Continued F(Unaudited) Six Week Period Ended December 31 , 1976 Note 4 - Notes Payable - Other: This loan is due to the Proprietor's sister and bears interest at 10% . Repayment terms are indefinite. Note 5 - Leases: The Proprietorship has negotiated oral leases with certain landowners for the use of their property as landfill sites . Terms of the leases are indefinite . Lease expense applicable to these leases was $1 , 500 .00 for the six week period ended December 31 , 1976. 347,6 m7tiwr�4i,. I! „..ww+i�tl/ill 9011 United Bank of Greeley June 4, 1979 Weld County Board of Commissioners 915 Tenth Street Greeley, Colorado 80631 Gentlemen: Lynn Keirnes has been a customer of United Bank of Greeley in excess of ten years. During this period of time, we have had various loan relationships up to a medium six figure balance. All these loans, as well as his various depository accounts, have been handled in an excellent manner. If you need any additional information or assistance, please feel free to contact me. Very. truly yours,,.% ' /' N L. Eloy U. Ortega Assistant Vise President EUO/tg 4kitp, 3.3 (d) • Major customers of applicant and the annual sales to each for the preceding two (2) years: 1977 1978 Total 1. The Way $ 56,725 $ 65,264 $121,989 2. Brantner 47, 792 53,8.'1 101613 ---L- $104,517 $119,085 $22233,602 19 85 riwYill�Yr a'` KENN1:"III F. LINO Al f{ 'r.NFY AT LAW T1' >W lll ill 151RG 1011 :'1 I ENTIi AVENGE r.O. I'(A 526 GREELEY, COLORADO 80631 TLL[PHONE(5051 555 2525 June 4 , 1979 The Board Of County Commissioners Weld County Greeley, Colorado 80631 Re : Colorado Landfill , Inc . Dear Commissioners : Pursuant to requirement 3 . 3 ( e ) of the County Development Revenue Bond Policy , as amended , this letter is intended to comply with said requirement . As of this date , the proposed Articles of Incorporation of Colorado Landfill Inc . have been submitted to the Secretary of State of the State of Colorado for approval . It is anticipated that the proposed Articles will be accepted and that Colorado Landfill , Inc . will be incorporated under and by virtue of the laws of the State of Colorado . The officers and directors of Colorado Landfill , Inc . will be as follows : Charles Lynn Keirnes , President and Director Lela J . Keirnes , Vice-President and Director C . Bradley Keirnes , Secretary-Treasurer and Director Brief resumes of each of the above-named individuals are attached hereto as Exhibit 1 , 2 and 3 . Very truly yours , vz Kenneth F . Lind KFL : sb RESUME CHARLES LYNN KEIRNES 4710 W . 12th Street Greeley , Colorado 80631 356-7413 PERSONAL Born : November 4 , 1929 , Greeley , Colorado Marital Status : Married Spouse : Lela J . Keirnes EDUCATION High School : Graduated May , 1947 , Eaton High School , Eaton , Colorado College : Two Quarters , Colorado State University , Fort Collins , Colorado EMPLOYMENT 1970 through 1977: Owner and operator , Keirnes Livestock Trucking , Inc . , Eaton , Colorado and Lucerne , Colorado COMMUNITY ACTIVITIES 1973 : Mayor of Eaton , Colorado Weld County T-Bone Club 1971 - 1973 : Town Council of Eaton , Colorado ' Weld County T-Bone Club REFERENCES Dean Severin , Route 2 , Eaton , Colorado RESUME LELA J . KEIRNES 4710 W . 12th Street Greeley , Colorado 80631 356-7413 PERSONAL Born : November 24 , 1929 , Greeley , Colorado Marital Status : Married Spouse : Charles Lynn Keirnes EDUCATION : High School : Graduated May , 1947 , Ault High School , Ault , Colorado College : Two Quarters at Colorado State University , Fort Collins , Colorado EMPLOYMENT : 1970-:present : Housewife and mother REFERENCES : Dean Severin , Route 2 , Eaton , Colorado 80615 RESUME C . BRADLEY KEIRNES PERSONAL Born : June 7 , 1956 , Greeley , Colorado Marital Status : Single Parents : Mr . and Mrs . Charles Lynn Keirnes , Greeley , Colorado EDUCATION High School : Graduated May , 1977 , Eaton High School , Eaton , Colorado College : Presently attending University of Northern Colorado , Greeley , Colorado , as a sophomore with emphasis on accounting . EMPLOYMENT 1978 : Summer - farming operation with Dave Fagerberg of Eaton , Colorado 1977 : Summer - truck driver for Keirnes Livestock Trucking , Inc . of Lucerne , Colorado REFERENCES Ed Pittock , of E . J . Pittock & Co . , Greeley , Colorado i3 1 3 .3 (f) Applicants pro forma balance sheets, income statements and hccash flow projections for the next five (5) years, reflecting 8, telentsna tproposed revenue bond issue. Under separate cover 3.3 (g) COLORADO LANDFILL, INC. UNAUDITED PRO FORMA BALANCE SHEET JUNE 1, 1979 Applicant's prepared financial statements dated within sixty (60) days of the application date. ASSETS Current assets: Cash $ 10,000 Property and equipment at cost: Office furniture and fixtures 1,500 Machinery and equipment 146,200 Buildings 15,000 Water rights 100,000 Landfill sites 256,300 519,000 Less accumulated depreciation and depletion Net property and equipment 519,000 $529,000 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Notes payable, Barbara A. Rohweder $350,000 Stockholders' equity: Common stock of $1 par value per share authorized 100,000 shares; issued and outstanding 50,000 shares 50,000 Capital in excess of par value 129,000 Retained earnings (deficit) 179,000 $529,000 ‘ . ' 3,3 (h) Copies of the applicant's financial statements, either audited or otherwise satisfactory to the County, for the preceding five (5) years or the entire time during which the applicant has conducted business. Waived - see 3.3 (b) _ r ' Mrt°dtl»Fa&M7u 1 ant . 1.1 (i) Complete list of assets to be purchased or constructed and expenses incidental to the acquisition, including cost of the sale of the Industrial Development Bonds: Project cost: Purchase of assets from Weld County Landfill ($500,000 less $150,000 down payment) $ 350,000 Portable office building 15,000 Scrapper (Greeley) 80,000 Rex Packer tractor (Greeley) 165,000 Ft. Lupton transfer station 35,000 Ft. Lupton equipment 50,000 Eaton transfer station 35,000 Eaton equipment 50 000 s Eaton land 17,000 Additional equipment, fencing, etc. all locations 64,000 Erie land 170,000 Erie equipment 40,000 Erie engineering cost 10,000 Total project cost 1 ,074,000 Bond issue cost: Legal 25,000 Accounting 20,000 Engineering 10,000 Miscellaneous (printing, etc.) 5,000 Trustee 5,000 Fund reserve 170,000 Commission 91,000 Total bond issue cost 326,000 $1,400,000 3.3 ( 1 ) A payment schedule or formula for retirement of the bonds and payment in lieu of taxes and cost of maintaining project in good repair and properly insured. Payment schedule: • Principal balance $1,400,000 Monthly payments 14,200 Interest rate 9% Available Fiscal Year Principal for Bond Bond Carry_ Ended Payment Retirement Retirement over August 31, 1980 $42,258 $42,258 $42,000 $258 August 31, 1981 50,239 50,497 50,00.0 497 August 31, 1982 54,952 55,449 55,000 449 August 31, 1983 60,106 60,555 60,000 555 August 31, 1984 65,745 66,300 66,000 300 Cost of maintaining project: See pro forma statements under separate cover. Insurance: See pro forma statements under separate cover. COLORADO LANDFILL, INC. UNAUDITED FINANCIAL STATEMENTS JUNE 1, 1979 THROUGH AUGUST 31, 1984 • "--17 Diu premer and company ('01r a, ceraked ptubbhic ocSoumtKi5 I\ . . COLORADO LANDFILL, INC. t } CONTENTS ` P#! jTransmittal letter a Statement of assumptions 2 Unaudited financial statement projections Balance sheets ,-4 Income statements 5 Cash flow project s 6 'W.4* Operating, general and administrative � eense 7 O )\\ �\ . 4w e \ /CS . 3-4 } l�� � premer and company certified public occctdants suite 103 1220 1 1 th avenue, dreeley, coloredo 80631 356-1895 Mr. C. Lynn Keirnes President Colorado Landfill, Inc. Mr. Donald Warden Director of Finance Weld County, Colorado Weld County Commissioners Weld County, Colorado The accompanying pro forma balance sheets, income statements and cash flow projections for Colorado Landfill, Inc. for the period June 1, 1979 through August 31, 1984 have been prepared on the basis of estimates and assumptions furnished by manage- ment of Colorado Landfill, Inc. as more fully described herein. We have not reviewed the information and assumptions to determine whether they constitute reasonable basis for preparation of the projections. The achievement of any financial projection may be affected by fluctuating economic conditions and is dependent upon the occurrence of other future events which cannot be assured. Therefore, the actual results achieved may vary from the projections and such variations could be material. • This report is solely for the internal information of C. Lynn Kerines, President, Colorado Landfill, Inc., Donald Warden, Director of Finance, Weld County, Colorado and Weld County Commissioners, Weld County, Colorado. It is not to be referred to any other third party for obtaining financing or for any other purpose without the prior approval of Premer and Company. The terms of our engagement are such that we have no obligation to update this report or to revise the prospective financial results because of events and transactions occurring subsequent to the date of this report. li`l' y May 31, 1979 -1- COLORADO LANDFILL, INC. STATEMENT OF ASSUMPTIONS FOLLOWED IN PROJECTING FINANCIAL INFORMATION 1,. The industrial development bond issue is projected at $1,400,000 which will be repaid in even monthly payments of $14,200 including ,interest at 9 percent over 15 years beginning October, 1979. The bonds will be retired serially in increments of $1,000 on the annual anniversary date of the bond issue from available monthly principal payments. Principal and interest accumulated prior to annual anniversary payments will be invested at an estimated 10 percent return. 2. A portion of the initial purchase price of the business and the acquisition of certain additional equipment will be financed on an interim basis prior to the bond issue. 3. Approximately $95,000 of the bonds proceeds will be held in escrow to finance the 1980 acquisition of a transfer station in the Eaton area. 4. The bond iccue cost of approximately $316,000 will be amoritized over the 15 ter life of the financing on a straight Line basis. 5. The Company -,..1 provide for depreciation of property and equipmcnt end deplc-Lion of landfill ciiet utilizing the straight-line method to apportion costs over the following estimated useful lives: Years Officc Iu:niture and fixtures 7 MachinL: y end equipment 3- 7 Buildir.,;o 10-15 Landfill sites (depletion) 10-30 6. Landfill f-cc c.re based upon annual yardage provided by Weld County Landfill, Inc. ct Ln averrg- per yard price of $1.20 beginning September 1, 1979. Projected revenues provide for an annual rate increase of 10 percent and an annual volume increase of 3.5 percent. . 7. Operating, general and administrative expense are management estimates. Methodology includes a tietail cost estimate by category at each landfill site or transfer ctation. Projected e:.:Jensen provide for an annual 10 percent increase in costs except for gas and oil which provide for an annual 15 percent increase in costs. Repairs end maintenance, gas and oil and transport cost are considered to be variable costs thtt will increase proportionally with volume increase. Accordingly, these costs provide for an additional 3.5 percent volumn increase. Management believes all other cost categories ere fixed costs which can accomodate volume increase through the five year projectio.is. 8,. The Company will elect to be taxed as a Subchapter S Corporation through August 31, 1982. All items having income tax significance will be reported by the stockholders on their individual income tax returns. Subsequent to that date the Company will terminate their Subchapter S Corporation status and incur income taxes at the corporate level. -2- COLORADO LANDFILL, INC. UNAUDITED BALANCE SHEET PROJECTIONS August 31, August 31, August 31, August 31, August 31, August 31, 1979 1980 1981 1982 1983 1984 ASSETS Current assets: Caste $ 10,000 $ 48,143 $___t0,734 $ 114,976 $ 201,929 $-21.2—t22.± Industrial development bond escrow 95,000 -- -- -- -- Property and equipment at cost: Office furniture and fixtures 1,500 1,500 1,500 1,500 1,500 1,500 Machinery and 4quipment 391 ,200 555,200 605,200 605,200 605,200 605,200 Buildings 15,000 65,000 100,000 100,000 100,000 100,000 Water rights 100,000 100,000 100,000 100,000 100,000 100,000 Landfill sites 256,300 436,300 446,300 446,300 446,300 446,300 764,000 1,158,000 1,253,000 1,253,000 1,253,000 1,253,000 Less accumulated depreciation and depletion (29,283) (151,508) (273,733) (394,340) (510,098) (625,781 Net property and equipment 734,717 1,006,492 979,267 858,660 742,902 627,219 Industrial development bond issue cost, net -- 295,000 274,000 253,000 232,000 211,000 $744, 717 $1,444,635 $1,314,001 $1,226,636 $1,176,831 $1,161,005 This statement has been prepared on the basis of the information and assumptions set forth on page 2, which have not been verified or evaluated for reasonableness. The achievement of any financial projection may be affected by fluctuating economic conditions and is dependent upon the occurrence of future events which cannot be assured. Therefore, the actual results achieved may vary from the projections and such variations could be materlsl This statement is solely for the internal information of C. Lynn Keirnes, President, Colorado Landfill, Inc., Donald Warden, Director of Finance, Weld County, Colorado and Weld County Commissioners, Weld County, Colorado. It is not to be referred to or presented to any other party for obtaining financing or for any other purpose without prior approval from Premer and Company. -3- COLORADO LANDFILL, INC. UNAUDITED BALANCE SHEET PROJECTIONS August 31, August 31, August 31, August 31, August 31, August 31, 1979 1980 1981 1982 1983 1984 , LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Note payable, bank $211 ,013 $ -- $ -- $ __ $ __ $ -- Note payable, Barbara A. Rohweder 350,000 -- i Current installments of industrial development bonds -- 50,242 54,955 60,110 65, 748 71,916 Total current liabilities 561,013 50,242 54,955 60,110 65, 748 71,916 Industrial development bonds -- 1,307,497 1,252,542 1,192,432 1,126,684 1,054,768 • 4tockholders, equity: Common stock of $1 par value per share authorized 100,000 ' shares; issued and outstanding 50,000 shares 50,000 50,000 50,000 50,000 50,000 50,000 Capital in excess of par value 129,000 129,000 129,000 129,000 129,000 129,000 Retained earnings (deficit) 4,704 (92,104) (172,496) (204,906) (194,601) (144,679) 183,704 86,896 6,504 (25,906) (15,601) 34,321 $744, 717 $1,444,635 $1,314,001 $1,226,636 $1,176,831 $1,161,005 lis statement has been prepared on the basis of the information and assumptions set forth ' page 2, which have not been verified or evaluated for reasonableness. The achievement any financial projection may be affected by fluctuating economic conditions and is 'pendent upon the occurrence of future events which cannot be assured. Therefore, the 'tual results achieved may vary from the projections and such variations could be material. • 'is. statement is solely for the internal information of C. Lynn Keirnee, President, ilorado Landfill, Inc., Donald Warden, Director of Finance, Weld County, Colorado and Weld mnty Commissioners, Weld County, Colorado. It is not to be referred to or presented to 'y other party for obtaining financing or for any other purpose without prior approval to Premer and Company. -4- I COLORADO LANDFILL, INC. UNAUDITED INCOME STATEMENT PROJECTIONS August 31, August 31, August 31, August 31, August 31, August 31, 1979 1980 1981 1982 1983 1984 Revenues: Landfill fees $102,300 $522,382 $592,904 $672,946 $763,794 $866,906 Interest income -- 2,113 2, , , , 525 2772 3028 3315 102,300 524,495 595,429 675, 718 766,822 870,221 Costs and expenses: Operating, general and administrative expense (page 7) 60,640 321,460 367,970 400,605 448,684 502,946 Amortization of bond issue cost -- 21,000 21,000 21,000 • 21,000 21,000 i Depreciation and depletion 29,283 122,225 122,225 120,607 115,758 125,683 Interest expense -- 117,439 120,158 115,445 110,290 104,652 Surcharge remittance 7,673 39,179 44,468 50,471 57,285 65,018 Total cost and expenses 97,596 621,303 675,821 708,128 753, , 017 809299 Net income (loss) before income taxes 4,704 (96,808) (80,392) (32,410) 13,805 60,922 ncome taxes -- -- -- -- 3500 11000 , , Net income (loss)$ 4,704 $(96,808) $(80,392) $(32,410) $ 10,305 $ 49,922 • • is statement has been prepared on the basis of the information and assumptions set forth Ipage 2, which have not been verified or evaluated for reasonableness. The achievement any financial projection may be affected by fluctuating economic conditions and is pendent upon the occurrence of future events which cannot be assured. Therefore, the tual results achieved may vary from the projections and such variations could be material. is statement is solely for the interanl information of C. Lynn Keirnes, President, Laredo Landfill, Inc., Donald Warden, Director of Finance, Weld County, Colorado and Weld :nty Commissioners, Weld County, Colorado. It is not to be referred to or presented to other party for obtaining financing or for any other purpose without prior approval xe premer and Company. -5- COLORADO LANDFILL, INC. UNAUDITED CASH FLOW PROJECTIONS August 31, August 31, August 31, August 31, August 31, August 31, 1979 1980 1981 1982 1983 1984 Cash collections: Landfill fees $102,300 $ 522,382 $592,904 $672,946 $763, 794 $866,906 Bond proceeds -- 1,305,000 95,000 Interest income -- 2,113 2,525 2, , , 772 3028 3315 102,300 1 ,829,495 690,429 675, , , 718 766822 870221 Cash disbursements: Operating, general and administrative expense (page 7) 60,640 321,460 367,970 400,605 448,684 502,946 Capital expenditures 245,000 1,060,000 95,000 Bond retirement -- "' payments -- 159, 700 170,400 170,400 170,400 170,400 Surcharge remittance 7,673 _ 39,179 44,468 50,471 57,285 Income tax payments -- 65,018 -- -- 3,500 11,000 313,313 1,580, , , , , 339 677838 621476 679869 749364 ash receipts over (under) cash disbursements (211,013) 249,156 12,591 54,242 86,953 120,857 , Ish beginning of Period 10,000 10,000 48,143 60, 734 114,976 201,929 prking capital draw payment) 211,013 (211,013) -- -- ah end of period $ 10,000 $ 48'143 $ 60 734 I - a $114,976 $201,929 $322, 786 rnulative working • rpital requirements $211,013 $ $ -_ $ -- $ $ s statement has been prepared on the basis of the information and assumptions set forth page 2, which have not been verified or evaluated for reasonableness. The achievement • any financial projection may be affected by fluctuating economic conditions and is pendent upon the occurrence of future events which cannot be assured. Therefore, the tual results achieved may vary from the projections and such variations could be material. la statement is solely for the internal information of C. Lynn Keirnes, President, lorado Landfill, Inc., Donald Warden, Director of Finance, Weld County, Colorado and Weld Inty Commissioners, Weld County, Colorado. It is not to be referred to or presented to ' other party for obtaining financing or for any other purpose without prior approval p Premer and Company. -6- COLORADO LANDFILL, INC. UNAUDITED OPERATING, GENERAL AND ADMINISTRATIVE EXPENSE PROJECTIONS August 31, August 31, August 31, August 31, August 31, August 31, 1979 1980 1981 1982 1983 1984 losure of sites $17,000 $ -- $ 10,000 $ -- $ -- $ -- ployee benefits 1,446 21,312 24,337 26, 770 29,448 32,394 sand oil 7,135 45,541 46,856 55,525 65,797 77,969 nsurance 875 3,500 3,850 4,235 4,659 5,125 nd lease 2,100 8,400 -- -- -- -- gal and accounting 10,000 5,000 5,500 6,050 6,655 7,321 lecellaneous 1,000 5,000 . 5,500 6,050 6,655 7,320 ffice supplies 250 7,500 2,750 3,025 3,329 3,663 ayroll taxes 1,446 21,312 24,337 26,770 29,448 32,394 ostage and freight 38 150 165 182 200 220 'pairs and maintenance 9,500 54,838 62,241 70,644 80,181 91,006 levies 9,640 142,080 162,248 178,473 196,321 215,954 axes and license -- 2,700 3,220 3,542 3,898 4,288 elephone 150 2,200 2,420 2,662 2,929 3,222 aneport . -- 1,887 9,126 10,815 12,816 15,187 ustee -- 1,000 1,000 1,000 1,000 1,000 pities 60 4,040 4,420 4,862 5,348 5,883 $60,640 $321,460 $367,970 $400,605 $448,684 $502,946 W statement has been prepared on the basis of the information and assumptions set forth page 2, which have not been verified or evaluated for reasonableness. The achievement any financial projection may be affected by fluctuating economic conditions and is endent upon the occurrence of future events which cannot be assured. Therefore, the foal results achieved may vary from the projections and such variations could be material. is statement is solely for the internal information of C. Lynn Keirnes, President, lorado Landfill, Inc., Donald Warden, Director of Finance, Weld County, Colorado and Weld nty Commissioners, Weld County, Colorado. It is not to be referred to or presented to other party for obtaining financing or for any other purpose without prior approval Premer and Company. -7- Hello