25b

• Board Meeting Date: 11/19/2008
• Description: CF Section - Changes to Existing Loans - Bijou Irrigation District - Diversion Structure Rehabilitation
• Board Meetings - Doc Type: Memo

$7,268,750 $7,259,800 $370,956
Totals:

to each member breaks down the cost per acre necessary to
cover each l oan described above , The
page:
2008 2009

Category Cost/Acre Cost/Acre

Operating Expen ses $40.00 $27.44
Spillway Loan $2.00 $1.80
Diversion Loan (this loan) $1.72 $5.54

East Dam Rehabilitation $2.86 $11.80

Totals: $46.58 $46.58

It is the intent o f the District to maintain the 2008 assessment rate of $46.58 per acre for 2009 , by
increasing the asse ssments for the loans that are proposed to increase, as identified above , and
reducing the assessments for annual operating expenses. The District can reduce its annual
operating assessments given the amount of carryover fun ds that have accrued since 2006 and the
reduction in legal and engineering fees anticipated in 2009 and in future years.

The finan cial ratios presented in Table 4 below are based on the proposed 2009 annual
assessment of $46.58 and assuming the proposed incr ease to the Empire Rese rvoir East Dam
Embankment Repair Loan is approved.

Table 4 . Financial Ratios
Financial Ratio Without With project
the project Future Year
2008 2009+
O perating Ratio (revenue/expense)
weak: less than 100%

108% 178 %

average: 100% - 120% strong: greater than 120%
( average ) (strong )

( 461 K/ 426 K) (526K /296 K)
Debt Service Coverage Ratio
(revenues - expenses)/debt service
149% 161%
weak: less than 100%
(strong) (strong)

average: 100% - 125% , strong: greater than 125%

(532K - 426K/71K) (893K - 296K/371 K)

Cash Reserves to Current Expense
weak: less than 50%

98 % 58 %
average: 50% - 100% strong: greater than 100%
( average ) (average)

( 4 86 K/ 497 K) (387 K/667 K)
Annual Operating Cost per Acre - Ft. (19 ,900 AF)
weak: greater than $20
$ $ 33.52
31.26

average: $10 - $20 strong: less than $10
(weak)
(weak)
(667 K/1 9 .9K)
( 497 K/19 .9K)

Collateral : As security for the loan, the District will pledge its assessment revenues. This is in
compliance with CWCB Financial Policy #5 (Collateral).

4