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Sijou Irrigation Company September 18-19, 2007 Agenda Item 18b 2.25% for 30 years. The CWCS loan will be repaid from an increase in share assessment from $30 to $39.60 per share. The annual loan cost for the project will be $0.92 per acre-foot based on an annual total Sijou Canal delivery of 41 ,790 acre-feet. Table 1. Financial Summary Project Cost $840,000 Number of Shares 4,000 Number of Shareholders 102 CWCS Loan Amount $756,000 CWCS Loan Payment (includes 10% reserve) $38,419 Current Annual per Share Assessment (2007) $30.00 Future Annual per Share Assessment (with CWCS loan) $39.60 Annual Cost of Loan per AF delivered (41,790 ac-ft.) $0.92 Share Assessment History: 2007 $ 30/share 2006 $ 26/share 2005 $ 25/share Well AUQmentation Assessment History: 2007 $12/acre 2006 $ 9/acre 2005 $ 4/acre Creditworthiness: The Company has no existing debt. Table 2 shows the Financial Ratios and indicates overall average ability to repay the $756,000 CWCS loan, with annual share assessments increased from $30 to $39.60 per share. Table 2. Financial Ratios Financial Ratio Without With project the project Future Year (A ver. 2004-06) 2008+ Operating Ratio (revenue/expense) weak: less than 100% 88%* 110% average: 100% - 120% (weak) (average) strong: greater than 120% (338K/383K) (495K/450K) Debt Service Coverage Ratio (revenues-expenses )/debt service N/A** 117% weak: less than 100% (average) average: 100% - 125% strong: greater than 125% (495K-450K38.4K) Cash Reserves to Current Expense weak: less than 50% 28% 19% average: 50% - 100% (weak) (weak) strong: greater than 100% (108K/383K) (91 K/488.4K) Annual Operating Cost per Acre-Ft. (41,790 AF) weak: greater than $20 *** $9.15 $11.70 average: $10 - $20 ( strong) (average) strong: less than $10 (383K/42K) (488K/42K) Operating deficits covered by reserve funds. * * Value is not applicable (N/A) since the Company has no existing debt. * Page 4 of 5