BOARD00171 ‎(2)‎

• Board Meeting Date: 5/23/2007
• Description: CF Section - Revisions to Existing Project Loans - Bijou Irrigation District - Empire Reservoir Rehabilitation
• Board Meetings - Doc Type: Memo

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Table 1. Financial Ratios

Financial Ratio Without Completed Amended
the project project project
Operating Ratio (revenue/expense) 109% 114% 114%
weak: less than 100% (average) (average) (average)
average: 100% - 120%
stronq: greater than 120%
Debt Service Coverage Ratio n/a 123% 113%
(revenues-expenses )/debt service (average) (average)
weak: less than 100%
average: 100% - 125%
stronq: greater than 125%
Cash Reserves to Current Expense 87% 35% 34%
weak: less than 50% (weak) (weak) (weak)
average: 50% - 100%
stronq: greater than 100%
Annual Cost per Ac-Ft diverted (19,887 AF) $15.10 $16.85 $17.00
weak: greater than $20 (average) (average) (average)
average: $10 - $20
strong: less than $10

Collateral: Security for this loan will be all revenues derived from the District's per acre
assessment to repay the Promissory Note in accordance with the Irrigation District Law of 1905
(C.R.S 37-41-101 to 160). This security is in compliance with CWCB Financial Policy #5
( Co llateral).

Staff Recommendation

Staff recommends that the Board approve an increase of $51,290 ($50,783 for project costs and
$507 for the 1 % loan origination fee, (in accordance with the CWCB Financial Policy No. 16)
from the Severance Tax Trust Fund Perpetual Base Account. The additional $51,290 increment
of funding would be for 30-years at the present lending rate of 2.5%. The District's amended
total loan amount will be $723,950 ($716,782 for the total project costs and $7,168 for the 1 %
loan origination fee). Security for the loan will be a pledge of the Bijou Irrigation District's
annual assessment tax revenues, in compliance with the CWCB Financial Policy No.5.

c: Denice Wagner, Bijou Irrigation District
Vaughn McWilliams, CWCB
Amy Stengel, AGO

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