11e

• Board Meeting Date: 1/22/2008
• Description: CF Section – Construction Fund and Severance Tax Trust Fund Perpetual Base Account – New Loans - Bijou Irrigation District - Empire Reservoir East Embankment Dam Repair
• Board Meetings - Doc Type: Memo

Table 1. Financial Summary
Total Pro~ect Cost $2,650,000
CWCB Loan Amount $2,385,000
CWCB Loan Amount (Includin 1% Service Fee) $2,408,850
CWCB Loan Payment $115,089
CWCB Loan Pa ment (Includin 10% Reserve) $126,598
Previous Assessment per acre (2007) $18.00
Approved 2008 Budget Assessment per acre $46.58
Annual Cost of Loan er acre-foot delivered (19,900 ac-ft.) $6.36
Annual Cost of Loan per acre Assessed (19,177) $6.60
Number of Acres Assessed 19,177
Assessment Levy History /acre: 2008 - $46.58; 2007 - $18; 2005 - $10; 2006 - $13;
2004 - $10
Crerlihvorthiness: The District has two existing loans with the CWCB. The first was approved
in May 2005 for $672,660 with an increase to $723,950 in May 2007, at 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 has an annual loan obligation of $38,354 (including the 10%
reserve requirement).
The second CWCB District loan was approved in September 2007 for $654,480. The loan was
for a diversion structure rehabilitation project. This loan has an annual obligation of $32,931
(including the 10% reserve requirement).
Table 2. Financial Ratios
Financial Ratio Without With project
the project Future Year
(Aver.200-t-U7) 2009+
Operating Ratio (revenues/expenses) 101%* 144%
weak: <100% - avera e: 100% - 120% - stron : >120°/ (average) (strong)
(387K/385K) (935K/650K)
Debt Service Coverage Ratio
(revenues-expenses)/debt service 144%***
weak: <100% - average: 100%- 120% - strong: >120°/ N/A** (strong)
(935K-650K/198K)
Cash Reserves to Current Expenses 117% ~8%
weak: <50% - avera e: 50% - 100% - st1-on : >100°/ (strong) (average)
(534K/456K) (489K/848K)
Annual Operating Cost per Acre-Ft. (19,900 AF) $19.35 $42.61
~eak: >$ 20 - avera e: $10 - $20 - stron : <$10 (average) (weak)
(456K/19.9K) (848K/19.9K)
* Operating deficits covered by reserve funds.
* * Value is not applicable (N/A) since District is not repaying debt in these years.
*** Debt service in future years includes payment on all CWCB loans