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<br />Julesburg Irrigation District <br />November 20-21, 2000 <br /> <br />Agenda Item 14b. and 15a. <br />(Updated November 22. 2000) <br /> <br />Credit worthiness: JID has existing debt as shown in Table 4. <br /> <br />Table 4. Existina Debt of the Julesburc Irrication District <br />Lender Remaining Annual Terms Maturity <br /> Amount Payment Date <br />CWCB (Julesburq Reservoir) $372,950 $22,539 5.00%, 40-vears 2036 <br />CWCB IHarmonv Diversion) $510,469 $28,630 3.75%,30-vears 2030 <br />Nebraska Machinerv $ 22,240 $22,240 Lease 2001 <br />Totals $905,659 $73,409 <br /> <br />Payments on the CWCB loans have been made as agreed. Payments on the Nebraska <br />Machinery lease have also been made as agree, and this lease will be fully paid in 2001, at <br />which time the District will obtain title to the lease equipment. <br /> <br />Table 5 shows the Financial Ratios for the JID and indicates average to strong ability to repay <br />with the project in place. <br /> <br /> <br /> <br />74% <br />$ 6.75 <br /> <br /> <br />67% <br />$6.75 <br /> <br /> <br />As security for the loan the JID will pledge assessment revenues backed by assessment <br />covenant and other property of value at least equal to the loan amount. This security is in <br />compliance with CWCB Loan Policy #5 (Collateral). <br /> <br />Refinancinc of Existinq CWCS Loan <br />The JID has formally requested that the existing CWCB for the Julesburg Reservoir be <br />refinanced from a 5%, 40-year loan, to a 4%, 30-year loan. The CWCB may grant this request <br />under conditions set forth in CAS 37-60-120, Contractual Powers of the board, which states: <br /> <br />"(3) The board may adjust the authorized interest rate, extend the authorized repayment period <br />for any project, and defer one or more annual payments if, in the board's opinion, the entity <br />requesting such adjustment, extension, and deferment demonstrates that it has encountered <br />significant and unexpected financial difficulties and that it has been duly diligent in its efforts to <br />comply with the repayment provisions of its contract with the board." <br /> <br />District's request includes the provision that the loan term be shortened (not extended). This is a <br />benefit to the CWCB, since these funds are made available for other projects. In addition, the <br />District is merely requesting the standard CWCB loan terms available for agriculture projects <br />approved in 2000. <br /> <br />The District has been diligent and has complied with the repayment provisions of both its CWCB <br />loan contracts. There are several reasons that the District faces financial hardship: <br /> <br />4 <br />