Three Rivers Levee Improvement Authority June 8, 2007 Presentation to the State Reclamation Board Current status of cash flow, including funding from Prop 1E & 84

Project Revenues (existing & future) and Total Expenditures (in millions)

Key Expenditures and Anticipated Cash Flow (in millions)

Backup

Key Actions Prior to Prop 1E Funds Being Available DWR selection of project Execution of Agreement For all necessary funds, or A first phase contract with at least $30 million in early implementation funds (and a later second phase contract for the balance) Agreement triggers local share availability

Delay of State Agreement Completion of Feather River improvements may be delayed until 2009 Work on Segment 2 could stop after Jun 2007 until State funding later in FY07/08 arrives Could force a decision to select either (i) funding segment 2 land acquisition or (ii) segment 3 levee improvements.

Key Element of Request to DWR 70% State & 30% Local Share of costs associated with Strengthen in Place (Segments 1, 2, & 3) 100% State cost share for setback levee incremental costs due to regional benefits Three Rivers has provided estimate of dollar amounts Cap on project costs to allow flexibility to deal with changes Timely co-payment of invoices (not a reimbursement program)

Finance Plan Phase 1, 2, 3, Yuba Phase 4 (to Simpson Lane), and Feather Segments 1 & 3 Design Development Funding State Prop 13 (DWR and F& G) FEMA Phase 4 Feather Segment 1 & 3 Construction and Segment 2 State Funding (Prop 1E and 84) Local Share (e.g. Development Community)