C153716 Refinancing Approval Letter

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-'e .- . a} ...," '7' ~ improvement in the numbers for both the 30-year and 40-year loans in 1994 and 1995 but that there would still have been financial problems in a low revenue year like 1 993. Table 2. 30-Year and 40-Year Analysis for $1.5 Million Construction Fund Loan 30-Year Loan 40-Year Loan CWCS Payment Annual Debt Service CWCS Payment Annual Debt Service Year Payment Reduction Deficit Ratio Pavment Reduction Deficit Ratio 1995 $84 000 $56,000 None 1.53 $73.000 $67 000 None 1.76 1994 $84 000 $56 000 None 1.58 $73,000 $67,000 None 1.82 1993 $84,000 ($1 ,468) ($53,398) 0.41 $73,000 $9,538 ($42,398) 0.47 Table 3 below gives the estimated cost per acre-foot of irrigation water based on an estimated yield of 20,000 acre-feet per year for the years 1993 through 1995. The table indicates the cost per acre-foot with the Bureau loan and the estimated cost per acre-foot if the Bureau loan is replaced with 30-year and 40-year Construction Fund financing. Table 3. Costs per Acre-Foot Year 1995 1994 1993 Bureau ost er Acre-Foot $17 $16 $16 30- Cost 40- Cost It should be noted that in addition to the above costs to the District, each of the eleven ditch companies has an internal assessment. Danielson & Associates, the District's engineering consultant, estimates that the combination of the District's costs plus the ditch company assessments results in an average cost of water to the irrigators in the District ranging from $21.50 to $23.70 per acre-foot. Table 4 gives a comparison of the District's average annual revenues and operating expenses for . the years 1993 -1995. The table indicates that, on the average, the District has about $97,000 per year available for debt service. Table 4. Revenue and Expense Comparison for the Years 1993 - 1995 Average Average Operating Left for Revenues Expense Debt Service $308,896 $211,686 $97,210 3