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. . Logan Irrigation District May 16-17, 2006 Agenda Item 11a The CWCB loan would be repaid from increases in the assessment levy, as necessary, from $2.60 per acre to a minimum of $3.50 per acre. (If 110 funds their entire share of the payment from their assessment levy, it will increase their levy from $1.50 to $2.00 per acre. Similarly, if MPRC funds their share from increased assessments, it will increasE~ from $50 to $65.65 per share.) The annual loan cost to LID for the project will be $1.20 per acre-foot based on their annual delivery of 9,614 acre-feet. Table 1. Financial Summary $337,095 128 12,818.9 $303,385 $21,106 $11,566 $2.60 $3.50 $1.20* * Annual Cost of Loan per AF delivered will be $1.11 for 110 (4,893 AF), and $1.04 for MPRC (3,934 AF). Creditworthiness: LID has no existing debt. Table 2 shows the Financial Ratios for LID and indicates overall average ability to repay the $303,385 CWCB loan, with annual LID assessment levy raised from $2.60 to $3.50 per acre, and pro-rata loan payments from liD and MPRC. Table 2. Financiall Ratios Financial Ratio Without With the project the project Future Year- (,4 ver. 2004-05) (2007+ )** Operating Ratio (revenue/expense) weak: less than 100% 107% 123% average: 100% - 120% (aver.) (strong) stranQ: Qreater than 120% Debt Service Coverage Ratio (revenues-expenses )/debt service N/A* 120% weak: less than 100% (aver.) average: 100% - 125% strong: greater than 125% Cash Reserves to Current Expense weak: less than 50% 86% 39% average: 50% - 100% (aver.) (weak) stronQ: Qreater than 100% Annual Operating Cost per Acre-Ft. (9,614 AF) weak: greater than $20 $ 7.15 $8.40 average: $10 - $20 (strong) (strong) stronQ: less than $10 Value is not applicable (N/A) since LID has no existing debt. ** Assumes LID increases levy per acre to $3.50, and LID receives annual income of $5,447 from 110 and $4,806 from MPRC for loan repayment. * Page 5 of 6 _",.,..-1.,-:,-,-,-....0.