BOARD02013

• Board Meeting Date: 11/20/2000
• Description: CF Section - Julesburg Irrigation District - Peterson Ditch Control Structures and Request for Loan Refinancing
• Board Meetings - Doc Type: Memo

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Julesburg Irrigation District
November 20.21, 2000

Agenda Item 14b. and 15a.

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Credit worthiness: JID has existing debt as shown in Table 4.

Table 4. Existina Debt of the Julesbura Irriaation District
Lender Remaining Annual Terms Maturity
Amount Payment Date
CWCS IJulesburn Reservoir) $372,950 $22,539 5.00%, 40-vears 2036
CWCS (Harmonv Diversion) $510,469 $28,630 3.75%, 30-years 2030
Nebraska Machinerv $ 22,240 $22,240 Lease 2001
Totals $905,659 $73,409

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Payments on the CWCS loans have been made as agreed. Payments on the Nebraska
Machinery lease have also been made as agree, and this lease will be fully paid in 2001, at
which time the District will obtain title to the lease equipment.

Table 5 shows the Financial Ratios for the JID and indicates average to strong ability to repay
with the project in place.

74%
$6.75

67%
$6,75

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As security for the loan the JID will pledge assessment revenues backed by assessment
covenant and other property of value at least equal to the loan amount, This security is in
compliance with CWCS Loan Policy #5 (Collateral).

Refinancina of Existin!:! CWCS Loan
The JID has formally requested that the existing CWCS for the Julesburg Reservoir be
refinanced from a 5%, 40-year loan, to a 4%, 30'year loan. The ewcs may grant this request
under conditions set forth in CRS 37-60-120, Contractual Powers of the board, which states:

"(3) The board may adjust the authorized interest rate, extend the authorized repayment period
for any project, and defer one or more annual payments if, in the board's opinion, the entity
requesting such adjustment, extension, and deferment demonstrates that it has encountered
significant and unexpected financial difficulties and that it has been duly diligent in its efforts to
comply with the repayment provisions of its contract with the board."

District's request includes the provision that the loan term be shortened (not extended). This is a
benefit to the CWCS, since these funds are made available for other projects. In addition, the
District is merely requesting the standard CWCS loan terms available for agriculture projects
approved in 2000.

The District has been diligent and has complied with the repayment provisions of both its CWCS .
loan contracts. There are several reasons that the District faces financial hardship:

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