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, . Bijou Irrigation District May 24-25, 2005 Agenda Item 15a Table 1 is a summary of the financial aspects of the project. A CWCB Loan of $666,000 would have an annual payment of $35,002 (including the 10% reserve requirement) at the loan terms of 2.50% for 30 years. The CWCB loan will be repaid from increases in the tax levy from $10 per acre to a minimum of $12 per acre. The annual loan cost for the project will be $1.76 per acre-foot based on an annual delivery of 19,900 acre-feet to BID irrigated lands. Table 1. Financial Summary $740,000 350 19,177 $666,000 $35,002 $10 $12 $1.76 Tax Levyl Tax Revenue History: 2005 2004 2003 2002 Creditworthiness: BID has no existing debt. $10/acre $10lacre $13/acre $ 7/acre $190,096 $249,298 $134,237 Table 2 shows the Financial Ratios and indicates overall average ability to repay the $666,000 CWCB loan, with annual tax levy raised from $10 to $12 per acre. Table 2. Financial Ratios Financial Ratio Without With completed the project project (Aver.2002-D4J {Future Year J Operating Ratio (revenue/expense) weak: less than 100% 109% 114% average: 100% - 120% (aver.) (aver.) strona: areaterthan 120% Debt Service Coverage Ratio (revenues-expenses )/debt service N/A* 123% weak: less than 100% (aver.) average: 100% -125% strona: areater than 125% Cash Reserves to Current Expense weak: less than 50% 87% 35% average: 50% - 100% (aver.) (weak) strona: areaterthan 100% Annual Operating Cost per Acre-Ft. (19,900 AF) weak: greater than $20 $15.10 $16.85 average: $10 - $20 (aver.) (aver.) strona: less than $10 * Value is not applicable (N/A) since BID has no existing debt. The ratio of Cash Reserves to Current Expense is in the weak category, but it is fairly typical practice for ditch companies, and other irrigation organizations, not to carry large cash reserves from year to year. Page 5 of 6