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Bijou Irrigation District <br />September 18-19, 2007 <br />Table 2. Financial Ratios <br />Agenda Item 18a <br />Financial Rafio Without With project <br /> the project Future Year <br /> Aver. 2004-06 2009+ <br />Operating Ratio (revenue/expense) <br />weak: less than 100% $5%* 108% <br />average: 100% - 120% (Wgak~ (average) <br />strong: greater than 120% <br /> 313W371 K 461 K/426K <br />Debt Service Coverage Ratio <br />(revenues-expenses)/debt service 149% <br />weak: less than 100% N/A** (strong) <br />average: 100% - 125% <br />strong: greater than 125% 532K-426K/71K <br />Cash Reserves to Current Expense <br />weak: less than 50% 162% 98% <br />average: 50% - 100% (strong) (average) <br />strong: greater than 100% <br /> 602K/371 K 486K/497K <br />Annual Operating Cost per Acre-Ft. (15,900 AF) <br />weak: greater than $20 $23.30 $31.26 <br />average: $10 - $20 (weak) (weak) <br />strong: less than $10 <br /> (371W15.9K) 497K/15.9K) <br />* Operating deficits covered by reserve funds. <br />** Value is not applicable (N/A) since District had no existing debt in these years. <br />As security for the loan, the District will pledge their annual acreage assessment revenues. This is <br />in compliance with CWCB Loan Policy #5 (Collateral}. <br />Recommendation <br />Staff recommends a loan not to exceed $654,480 ($648,000 for project costs and $6,480 for the 1% <br />Loan Service Fee in accordance with CWCB Loan Policy #16), to the Bijou Irrigation District from <br />the Severance Tax Trust Fund Perpetual Base Account, to rehabilitate its diversion structure (Empire <br />Intake Canal) on the South Platte River, used to fi{I Empire Reservoir. The recommended terms of the <br />Ioan are 30 years at 2.25 % per annum. Security for the loan will be a pledge of Bijou Irrigation District <br />annual acreage assessment revenues. <br />Staff further recommends that final approval of the loan be conditioned upon all other standard <br />contracting provisions of the CWCB. Further, staff recommends the following approval condition: <br />The proposed increase in acreage assessment from $18 per acre to $19.72 per acre to <br />cover CWCB loan repayment, as well as the authority to assume the proposed <br />indebtedness, shall be approved by the District electors in accordance with the applicable <br />provisions of the Irrigation District Law of 1905, C.R.S. 37-41-113(4) and C.R.S. 37-41-117.) <br />cc: Denice Wagner. Secretary, Bijou Irrigation District <br />Brent Nation, P.E., Nation Engineering Services, LLC, Fort Morgan, CO <br />Amy Stengel, AGO <br />Attachment <br />Page5of5 <br />