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<br />The amended loan amount for the Company will be 819,010($810,901 for project costs and $8,190 <br />for the 1% Loan Service Fee), at the present interest rate of 2.25% for 30-years. The new annual <br />payment will be $41,622, which includes the 10% reserve requirement. The Company's current <br />approved loan of $763,560 has an annual payment of $38,804, which includes the 10% reserve <br />requirement. <br /> <br />Financial Analysis <br /> <br />The Company's financial ratios will remain in the average category, with the exception of Cash <br />Reserves to Current Expense ratio, which is weak. It is fairly typical practice for ditch <br />companies, and other irrigation organizations, not to carry large cash reserves from year to year. <br /> <br />As security for the loan, the Company will pledge its annual share assessment revenues, backed <br />by a rate covenant, and the project itself. This is in compliance with CWCB Financial Policy #5 <br />(Collateral). <br /> <br />Staff Recommendation <br /> <br />Staff recommends that the Board approve an increase of $45,450 ($45,000 for project costs and <br />$450 for the 1 % Loan Service Fee) from the Severance Tax Trust Fund Perpetual Base Account. <br />The District's amended total loan amount will be $809,010 ($801,000 for the total project costs <br />and $8,090 for the 1 % loan origination fee) at the Company's current interest rate of2.25% for <br />30-years. Security for the loan shall be collateral in compliance with CWCB Loan Policy No.5. <br /> <br />c: Denice Wagner, Bijou Irrigation Company <br />Vaughn McWilliams, CWCB <br />Amy Stengel, AGO <br /> <br />Attachment <br /> <br />ACTION TAKEN BY THE CWCB BOARD ON MARCH 19.2008 <br />Board approved staff recommendation. <br /> <br />3 <br />