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<br />Logan Irrigation District <br />May 16-17, 2006 <br /> <br />Agenda Item 11 a <br /> <br />I <br /> <br />The CWCS loan would be repaid from increases in the assessment levy, as necessary, from $2.60 <br />per acre to a minimum of $3,50 per acre. (If 110 funds their entire share of the payment from their <br />assessment levy, it will increase their levy from $1.50 to $2.00 per acre. Similarly, if MPRC funds <br />their share from increased assessments, it will increase from $50 to $65.65 per share.) The annual <br />loan cost to LID for the project will be $1,20 per acre-foot based on their annual delivery of 9,614 <br />acre-feet. <br /> <br />Table 1. Financial Summary <br />Proiect Cost $337,095 <br />Number of Irriaators (LID) 128 <br />Number of Acres Assessed (LID) 12,818.9 <br />CWCS Loan Amount $303,385 <br />CWCS Loan Payment (includes 10% reserve) $21,106 <br />LID Share of CWCS Loan Pavment $11,566 <br />Current Levy per acre (LID) - 2006 $2.60 <br />Required New Levy per acre (L1D)- with CWCS loan $3.50 <br />Annual Cost of Loan per AF delivered (L1D)- 9,614 ac-ft. $1,20* <br /> <br />* Annual Cost of Loan per AF delivered will be $1.11 for 110 (4,893 AF), and $1.04 for MPRC <br />(3,934 AF), <br /> <br />Creditworthiness: LID has no existing debt. <br /> <br />. <br /> <br />Table 2 shows the Financial Ratios for LID and indicates overall average ability to repay the <br />$303,385 CWCS loan, with annual LID assessment levy raised from $2.60 to $3.50 per acre, and <br />pro-rata loan payments from 110 and MPRC. <br /> <br />Table 2. Financial Ratios <br /> <br />Financial Ratio Without With the project <br /> the project Future Year- <br /> (Aver. 2004-05) (2007+ )** <br />Operating Ratio (revenue/expense) <br />weak: less than 100% 107% 123% <br />average: 100% - 120% (aver.) (strong) <br />stranQ: Qreaterthan 120% <br />Debt Service Coverage Ratio <br />(revenues-expenses)/debt service N/A* 120% <br />weak: less than 100% (aVeL) <br />average: 100% - 125% <br />stronQ: Qreater than 125% <br />Cash Reserves to Current Expense <br />weak: less than 50% 86% 39% <br />average: 50%.100% (aveL) (weak) <br />strano: areater than 100% <br />Annual Operating Cost per Acre-Ft. (9,614 AF) <br />weak: greater than $20 $ 7.15 $8.40 <br />average: $10 - $20 (strong) (strong) <br />strona: less than $10 <br /> <br />* <br /> <br />Value is not applicable (N/A) since LID has no existing debt. <br />.. Assumes LID increases levy per acre to $3,50, and LID receives annual income of <br />$5,447 from liD and $4,806 from MPRC for loan repayment. <br /> <br />. <br /> <br />Page 5 of 6 <br />