BOARD01208

• Board Meeting Date: 5/23/2005
• Description: CF Section - New Project Loans Bijou Irrigation District - Empire Reservoir Dam Rehabilitation
• Board Meetings - Doc Type: Memo

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Bijou Irrigation District
May 24-25. 2005

Agenda Item 15a

Table 1. Financial Summary

Project Cost $740,000
Number of IrriQators 350
Number of Acres Assessed 19,177
CWCB Loan Amount $666,000
CWCB Loan Pavment (includes 10% reserve) $35,002
Current Tax Levy per acre (2005) $10
Required New Tax Levy per acre (with CWCB loanl $12
Annual Cost of Loan per AF delivered (19,900 ac-ft.l $1.76

Tax Levy/ Tax Revenue History: 2005
2004
2003
2002
Creditworthiness: BID has no existing debt.

$10/acre
$10/acre
$13/acre
$ 7/acre

$190,096
$249,298
$134,237

Table 2 shows'the Financial Ratios and indicates overall average ability to repay the $660,000
CWCB loan, with annual tax levy raised from $10 to $12 per acre.

Table 2. Financial Ratios

Financial Ratio Without With completed
the project project
(Aver. 2002-041 (Future Year)
Operating Ratio (revenue/expense)
weak: less than 100% 109% 114%
average: 100% - 120% (aver.) (aver.)
strona: areater than 120%
Debt Service Coverage Ratio
(revenues-expenses )/debt service N/A* 123%
weak: less than 100% (aver.)
average: 100% - 125%
strona: areaterthan 125%
Cash Reserves to Current Expense
weak: less than 50% 87% 35%
average: 50% - 100% (aver.) (weak)
strona: areater than 100%
Annual Operating Cost per Acre-Ft. (19,900 AF)
weak: greater than $20 $15.10 $16.85
average: $10 - $20 (aver.) (aver.)
strana: less than $10

* Value is not applicable (N/A) since BID has no existing debt.

The ratio of Cash Reserves to Current Expense is in the weak category, but it is fairly typical
practice for ditch companies, and other irrigation organizations, not to carry large cash reserves
from year to year.

As security for the loan, the BID will pledge their annual tax levy revenues. This is in compliance
with CWCB Loan Policy #5 (Collateral).

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