The Annual Shareholders’ Meeting
Cache Highline Water Association

April 2, 2018

            The Annual Shareholders’ Meeting of the Cache Highline Water Association was held on April 2, 2018, at the North Logan City Library, 475 East 2500 North, North Logan, Utah. Approximately 105 people were present in addition to the Board of Directors.

            President Kirt Hoggan welcomed the attendees and introduced the Board Members in attendance, as well as the Treasurer, Secretary, and three Water Managers.


Copies of the 2017 annual meeting minutes and financial statements were available to attendees as they entered the meeting. A motion to approve the minutes of last year’s meeting, held on March 13, 2017, was proposed by Ron Bowman, seconded by Jim Crook, and carried unanimously.

Financial Report Highlights (see attachments)

Treasurer Lyle Thornley presented the comparative 2016 and 2017 financial statements. Referring to the income statement expenses, he explained that the wells were turned on last year, which is very expensive. In addition, salaries increased with the hiring of a full-time Water Manager and assistants who all have increased responsibilities resulting in much better maintenance. Insurance in 2017 was less than the combined total of the two policies for the separate canals during previous years, and although the Logan River Water Users annual assessment shows only a $1,000 increase in 2017, it will be increasing over 50 percent this year. Lyle also explained the entries for short- and long-term debt now that the restoration and pressurization projects are completed.

Gene Kartchner made a motion to accept the financial statements as presented. The motion was seconded by Dave Erickson and carried unanimously.

Operations Update


            Water Manager Darin Evans informed the audience that although there was far more water than usual due to the heavy winter snowpack, the 2017 water year was very difficult for the Water Managers who had to monitor the channels 24/7 to regulate the flow to make sure the water did not overflow the banks and yet adequate water was reached Smithfield. The current snowpack is only 85 percent of normal this year. Darin noted that day watering is critical for the system to work properly, stressing the need for each headgate to have a manager and encouraging all headgate managers to work out a schedule for their users for use throughout the watering season. A question was asked about USU’s watering, and Kim Cronquist and Jim Huppi reported that USU and the Logan Golf and Country Club water on alternate days and they are metered.

            Darin also reported that the area between 1500 North (Logan) and Hyde Park is being studied to find out why so much water is being used through the area. Bentonite will be used in some areas to prevent leaks. The tunnel was checked and found to be in good repair; however, at the end of the season, the rollers on the diversion screen broke, resulting in an earlier shutdown in October than anticipated. Darin and Kim Cronquist have now learned how to repair the problem and have extra parts on hand.

            Much work was completed in January and February including removal of 82 loads of silt from the Smithfield Golf Course area. Trees are now being trimmed and cut down as the Managers work to keep the channels free and clear. A question was asked about lining the rest of the canal channel; current debt needs to be paid off before such a project is considered.


Final maintenance work on the canal channels is finishing up and a replacement bridge in Hyde Park needs to be completed before water will be turned into the system for the season. The Water Managers anticipate water will be in the Canal around April 20 but encouraged users to keep their headgates closed for several days until the water clears.



            Kirt Hogan explained that although the Company currently has 10 Directors, the bylaws allow for fewer and asked for a motion, discussion, and vote to reduce the number of Directors to 9. Bruce Godfrey so moved, seconded by Eric Hansen, and the motion carried unanimously.

            The Board positions currently held by Laurel Hayes and Marv Halling were up for reelection; subsequent to the previous motion, only one position would be voted on. Laurel declined to run again; Marv expressed willingness to serve again. Thayne Braegger nominated Marv Halling; the nomination was seconded by Phil Rasmussen. Dave Erickson made a motion that nominations cease and that the nominee be voted in by acclamation; the motion was seconded by Bert Israelsen and carried unanimously, electing Marv Halling to the position.

            This meeting adjourned at 7:45 p.m.

Cache Highline Water Association    
Balance Sheet - Year Ending December 31 2016 2017
Current Assets    
   Cache Valley Bank - Operations Account $       190,548 $       136,186
   Cache Valley Bank - Projects Account            99,871              1,432
   Accounts Receivable - Shareholders              1,200              1,007
         Total Current Assets $       291,619 $       138,625
Fixed Assets    
   Logan River Water Rights @ $750 per acre ft $ 21,837,000 $ 21,837,000
   Water Well - Smithfield 400 North        2,100,000        2,100,000
   Water Well - Smithfield Canyon        1,050,000        1,050,000
   Pipeline Project - 4800 North (2010)          292,500          292,500
   Cache Water Restoration Project (2013)      24,903,643      24,903,643
   LN Pipeline Pressurization Project (2016)        3,331,354        3,661,295
   Watermaster Vehicles /Equipment            35,519            35,519
         Total Fixed Assets $   53,550,016 $   53,879,957
Other Assets    
   Long Term Notes Receivable - Cities $   1,389,421 $   1,294,724
           Total Assets $   55,231,056 $   55,313,306
Current Liabilities    
   Accounts Payable / Contractor Deposits & Bonds Held $         22,900 $         22,900
   Current Portion of Long Term Debt - Pipeline Project 4800 North            10,900            10,900
   Current Portion of Long Term Debt - Cache Restoration Loan 1            88,000            88,000
   Current Portion of Long Term Debt - Cache Restoration Loan 2          121,600          121,600
   Current Portion of Long Term Debt - LN Pressurization Project          134,800          134,800
         Total Current Liabilities $       378,200 $       378,200
Long Term Liabilities    
   UDWR Loan - Pipeline Project 4800 North $       195,700 $       184,800
   UDWR Loan - Cache Canal Restoration Project - Loan 1        1,848,000        1,760,000
   UDWR Loan - Cache Canal Restoration Project - Loan 2        2,105,283        1,983,563
   UDWR Loan - LN Pipeline Pressurization Project        1,913,698        1,923,400
         Total Long Term Liabilities $   6,062,681 $   5,851,763
           Total Liabilities $   6,440,881 $   6,229,963
Capital Stock @ $10 per share $         72,790 $         72,790
Donated Capital - Federal WaterSmart Grant          965,000          965,000
Shareholder Equities      47,493,275      47,753,969
Net Income          259,110          291,584
         Total Equities $   48,790,175 $   49,083,343
           Total Liabilities & Equities $   55,231,056 $   55,313,306

Cache Highline Water Association    
Income Statement Years Ending December 31 2016 2017
   Annual Assessment $ 435,171 $ 475,112
   Cities Share of Canal Maintenance      59,331      68,490
   Change Applications / Encroachments / Easements      16,685      35,300
         Total Revenues $ 511,187 $ 578,902
   Canal Cleaning / Maintenance / Repair $   42,537 $   51,241
   Electrical Power - Smithfield Wells      14,026        9,506
   Utilities / Maintenance - Diversion and Measuring Devices      16,631      17,392
   Salaries, Payroll Taxes, Workers Compensation      76,009      115,678
   Watermaster Mileage / Vehicle Fuel & Maintenance        6,763        8,274
   Liability Insurance        5,429        5,324
   Office / Postage / Website / Shareholder Meeting Expense      10,067      10,156
   Logan River Water Users Annual Assessments        8,637        9,634
   Consulting / Engineering Fees      10,814        4,976
   Consulting / Legal Fees      24,650        4,638
   Director Meeting Fees        5,990        5,990
   Interest Expense      30,524      44,509
         Total Expenses $ 252,077 $ 287,318
           Net Income from Operations $ 259,110 $ 291,584
Other Uses of Funds    
   Net Loan Payments to Utah Dept of Water Recourses $ 123,459 $ 215,378
   LN Pipeline Pressurization Project (Final)      12,989      228,439
           Net Funds Increase (Decease) $ 122,662 $ (152,233)