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~f n c ,.-.0 ; 1(' 1/;>0; ;? 0/ ~.J Based on the additional costs as presented above, the District is requesting an additional $19<1, 081 in loan funds. DISCUSSION Due to additional work not programmed in the original cost estimate and unforeseen variations in cost for specific items during construction, the overall cost of the project has increased, resulting in a requested loan mere. ase of approximately 65% or ${94,081.-ptaffhas reviewed the bids received by the District and finds the construction costs to be reason~e, given increase material costs, site location, and contractor availability. pf/ '9 Et :-:;-',<;J/ ~. The amended loan amount for the District will be $505,000 ($500,000 for project costs and $5,000 for the 1 % Loan Service Fee), at the present blended interest rate of 2.35 % for 20-years. The new annual payment will be $34,172, which includes the 10% reserve requirement. The Company's current approved loan of $306,419 has an annual payment of $21,316, which includes the 10% reserve requirement. Table 1 illustrates the combined Financial Ratios for the Logan Irrigation District and indicates an average to strong ability to repay the $505,000 CW'CB loan. Table 1. Financial Ratios Financial Ratio With Amended the project project Operating Ratio (revenue/expense) 123% 133% weak: less than 100% (strong) (average) average: 100% - 120% strong: qreater than 120% Debt Service Coverage Ratio 120% 112% (revenues-expenses)/debt service (average) (average) weak: less than 100% average: 100% - 125% strong: greater than 125% Cash Reserves to Current Expense 39% 63% weak: less than 50% (weak) (average) average: 50% - 100% strong: greater than 100% Annual Cost per Ac-Ft diverted (9,614 ac-ft) $8.40 $9.12 weak: greater than $20 (strong) (strong) average: $10 - $20 strong: less than $'10 The amended project values above are based on the District increasing its levy per acre from $2.60 to $4.13, and that the District receives annual income of $8,816 from IllifIrrigation District and $6,630 from the Morgan Prewitt Reservoir Company. The annual income received by the District is based on the Illiff Irrigation District raising its levy per acre from $1.50 to $2.31, and Morgan Prewitt Reservoir Company raising its annual share cost from $50 to $75.40. Collateral: As security for this loan the District will pledge their 3lmual assessment levy revenues. This security is in compliance with CWCB Financial Policy #5 (Collateral). 3 -