June

CAPITAL BUDGET MEETING

JUNE 29^TH, 2009, 2:00 P.M.

TUMALO IRRIGATION DISTRICT

64697 COOK AVENUE

BEND, OREGON 97701

BOARD:        Bob Morrow, Ronald Cochran, Steve Putnam, Patricia Gainsforth

STAFF:         Elmer McDaniels, Ken Rieck, Bob Varco, Jan Wickham, Fran

                      DeRock

ATTORNEY: Bill Hopp

Vice-Chairman Morrow called the meeting to order at 2:00 P.M. and appointed Fran DeRock scribe.

CAPITAL BUDGET SHORTFALL

The Board reviewed the 2009 Capital Budget.  There is a shortfall of over $100,000 to meet the needs lined out in the 2009 budget. There was discussion of selling District owned property, putting in the road to the lots on Laidlaw Butte that can be sold, floating a bond for the road, finding different options to borrow dollars, etc. All are related to ways of funding the current shortfall and future long range projects.

Director Gainsforth made a motion to:

1.      Get an estimate of value of District owned tax lot 1100 on Laidlaw Butte from three knowledgeable brokers as follows:

a.      Carol Osgood-Manager McDaniels will contact.

b.      Kitty Warner-Manager McDaniels will contact.

c.      Craig Long-Director Cochran will contact.

It is noted that Director Cochran has a business interest with Mr. Long which is non-real estate related.

The estimates of value are to be presented on the respective brokers’ letterhead.

2.      Manager McDaniels will explore the price of a bond to construct the road to the District owned lots on Laidlaw Butte.

3.      Manager McDaniels will explore the possibility of negotiating a $350,000 loan for the District at no more that 2.5%.  He will contact David Ulbright of Wedbush, Morgan Securities, who works with Special

      Districts, and ask him to give a presentation on loan options at the

      Executive Board Meeting on July 14^th, 2009.

ADJOURNMENT

Director Putnam made a motion that the Capital Budget Meeting be adjourned at 3:50 P.M., seconded by Director Gainsforth.  Motion carried unanimously.