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f � <br />Y The District can reduce their annual operating assessments given the amount of carryover funds <br />that have accrued since 2006 and the reduction in legal and engineering fees anticipated in 2009 <br />and in future years. <br />The financial ratios presented in Table 4 below are based on the proposed 2009 annual <br />assessment of $46.58 and assuming the proposed increase to the District's Diversion Structure <br />Loan is approved. <br />Table 4. Financial Ratios <br />Financial Ratio Without With project <br />the project Future Year <br />2008 2009+ <br />Operating Ratio (revenues/expenses) 144°/a 178% <br />(strong) (strong) <br />weak: <100% - average: 100% - 120% - stron :>120°/ <br />(935K/650K) (526K/296K) <br />Debt Service Coverage Ratio 0 0 <br />(revenues-expenses)/debt service 144 /0 161 /o <br />(strong) (strong) <br />weak: <100% - avera e: 100% - 120% - stron :>120°/ (935K-650K/198K) (893K-296K/371 K <br />Cash Reserves to Current Expenses 58% 58% <br />weak: <50% - avera e: 50% - 100% - stron : >100% (average) (average) <br />(489K/848K 387K/667K <br />Annual Operating Cost per Acre-Ft. (19,900 AF) $42.61 $33.52 <br />eak: >$ 2 avera e: $10 - $20 - stron : <$1 (average) (weak) <br />(848K/19.9K) (667K/199K) <br />Collateral: As security for the loan, the District will pledge its assessment revenues. This is in <br />compliance with CWCB Financial Policy #5 (Collateral). <br />Recommendation <br />Staff recommends that the Board approve an increase of $2,045,250 ($2,025,000 for project <br />costs and $20,250 for the 1% Loan Service Fee) to the Bijou Irrigation District, from the <br />Severance Tax Trust Fund Perpetual Base Account, at their current interest rate of 2.25% for 30- <br />years. The District's total amended loan amount will be $4,450,100 ($4,410,000 for project <br />costs and $44,100 for the 1% Loan Service Fee) for the repair of Empire Reservoir's East Dam <br />embankment. Security for the loan shall be collateral in compliance with CWCB Loan Policy <br />No. 5. <br />Staff further recommends that final approval of the loan be conditioned upon all other standard <br />contracting provisions of the CWCB and upon the District's election and voter approval of all <br />debt. <br />ACTION TAKEN BY THE CWCB BOARD ON NOVEMBER 19, 2008 <br />Board approved staff recommendation. <br />c: Denice Wagner, Secretary— Bijou Irrigation District <br />Amy Stengel, AGO <br />