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<br />) <br /> <br />Bijou Irrigation Company <br />September 18-19, 2007 <br /> <br />Agenda Item 18b <br /> <br />Table 1 is a summary of the financial aspects of the project. A CWCS loan of $756,000 would <br />have an annual payment of $38,419 (including the 10% reserve requirement) at the loan terms of <br />2.25% for 30 years. The CWCS loan will be repaid from an increase in share assessment from $30 <br />to $39.60 per share. The annual loan cost for the project will be $0.92 per acre-foot based on an <br />annual total Sijou Canal delivery of 41 ,790 acre-feet. <br /> <br />Table 1. Financial Summary <br /> <br />Proiect Cost $840,000 <br />Number of Shares 4,000 <br />Number of Shareholders 107 <br />CWCS Loan Amount $756,000 <br />CWCS Loan Payment (includes 10% reserve) $38,419 <br />Current Annual per Share Assessment (2007) $30.00 <br />Future Annual per Share Assessment (with CWCS loan) $39.60 <br />Annual Cost of Loan per AF delivered (41,790 ac-ft.) $0.92 <br /> <br />Share Assessment History: <br />2007 $ 30/share <br />2006 $ 26/share <br />2005 $ 25/share <br /> <br />Well AUQmentation Assessment History: <br />2007 $12/acre <br />2006 $ 9/acre <br />2005 $ 4/acre <br /> <br />Creditworthiness: The Company has no existing debt. <br /> <br />Table 2 shows the Financial Ratios and indicates overall average ability to repay the $756,000 <br />CWCS loan, with annual share assessments increased from $30 to $39.60 per share. <br /> <br />Table 2. Financial Ratios <br /> <br />Financial Ratio Without With project <br /> the project Future Year <br /> (Aver. 2004-06) 2008+ <br />Operating Ratio (revenue/expense) <br />weak: less than 100% 88%* 110% <br />average: 100% - 120% (weak) (average) <br />strong: greater than 120% <br /> (338K/383K) ( 495K/450K) <br />Debt Service Coverage Ratio <br />(revenues-expenses)/debt service N/ A ** 117% <br />weak: less than 100% (average) <br />average: 100% - 125% <br />strong: greater than 125% (495K-450K38.4K) <br />Cash Reserves to Current Expense <br />weak: less than 50% 28% 19% <br />average: 50% - 100% (weak) (weak) <br />strong: greater than 100% <br /> (108K/383KJ (91 K/488.4K) <br />Annual Operating Cost per Acre-Ft. (41,790 AF) <br />weak: greater than $20 *** $9.15 $11.70 <br />average: $10 - $20 (strong) (average) <br />strong: less than $10 <br /> (383K/42K) (488K/42K) <br /> <br />Page 4 of 5 <br />