18a

• Board Meeting Date: 9/18/2007
• Description: CF Section - New Project Loans - Bijou Irrigation District - Diversion Structure Rehabilitation
• Board Meetings - Doc Type: Memo

Sijou Irrigation District
September 18-19, 2007

Agenda Item 18a

the ditch intake structure. Sheet piling and pipe piling will be used under the new concrete
structures for stabilization and erosion protection.

The Total Project cost is estimated to be:

1.
2.
3.

Engineering
Construction
Contingency (10%)
TOTAL

$ 14,900
641,000
64.100
$720,000

If the loan is approved, final design would be completed in July 2008, with start of construction in
August 2008 and completion at the end of September 2008. All easements and rights of way have
been arranged for. The District and the engineer expect that the project will be exempt form
Federal 404 permitting.

Financial Analvsis

The total estimated cost of the project is $720,000, and District water usage is 100% agricultural.
Staff is recommending a maximum loan amount of $648,000 (90% of the estimated project cost) for
30 years at an interest rate of 2.25%. The District will pay the additional 10% ($72,000) of the
project cost from reserve funds. The District will cover any costs that exceed the estimated project
cost.

Table 1 is a summary of the financial aspects of the project. A CWCS Loan of $648,000 would
have an annual payment of $32,931 (including the 10% reserve requirement) at the loan terms of
2.25% for 30 years. The CWCS loan will be repaid from increases in the acreage assessment
from $18.00 per acre to a minimum of $19.72 per acre. The annual loan cost for the project will be
$2.07 per acre-foot based on an annual delivery of 15,900 acre-feet to District irrigated lands.

a e mancla ummarv
Project Cost $720,000
Number of Irrigators 157
Number of Acres Assessed 19,177
CWCS Loan Amount $648,000
CWCS Loan Payment (includes 10% reserve) $32,931
Current Assessment per acre (2007) $18.00
Required Assessment per acre (with CWCS loan) $19.72
Annual Cost of Loan per AF delivered (15,900 ac-ft.) $2.07

T bl 1 F . I S

Assessment Levy History:

2007 $18/acre
2006 $13/acre

2005 $10/acre
2004 $10/acre

Creditworthiness: The District has one existing loan with CWCS, approved in May 2005 for
$672,660 with an increase to $723,950 in May 2007, with an interest rate of 2.5% for 30 years.
The loan was for construction of a new spillway and additional toe drains for Empire Reservoir.
This loan will have an annual loan obligation of $38,047 (including the 10% reserve requirement)

Table 2 shows the Financial Ratios and indicates overall average ability to repay the new $648,000
CWCS loan, and the existing loan, with annual assessment raised from $18.00 to $ 19.72 per acre.

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