Laserfiche WebLink
<br />c., <br /> <br />Mr. Walker indicated that a large portion of Colorado's needed water <br />conservation and rehabilitation projects cannot generate enough revenues <br />to pay for themselves. Thus, if these needs are to be met and Colorado's <br />compact entitlements protected over the next two decsdes, substantial <br />sums of tsx revenues must be devoted to this purpose. <br /> <br />" ..... <br />en <br />to'J <br />~ <br /> <br />Such tax revenues could be accumulated over time to "pay as you go" for <br />project construction and rehabilitatlon. However, the need is so great <br />for both water development and other capital investments that such a <br />policy may not permit a timely and effective response to the investment <br />needs which Colorado confronts. <br /> <br />Mr. Walker concluded that under these circumstances, careful <br />consideration needs to be given to the desirability of embarking on a <br />general obligation financing program in Colorado. This in turn will <br />necessitate examining the need for a constitutional amendment. <br /> <br />Arkansas Funding Program <br /> <br />Mr. Jonathan Sweeney, Arkansas Soil and Water Conservation Commission, <br />spoke on Arkansas' Water Resources Development Obligation Bond Program. <br />Under this new program, the Arkansas Soil and Water Conservation <br />Commission is authorized to issue tax exempt Bonds backed by the full <br />faith and credit of the State of Arkansas for the purpose of financing <br />water resource projects to serve the people of the State of Arkansas. <br /> <br />Eligible applicants for the Water Resources Development Bonds include any <br />individual, psrtnership, corporation, county, municipality, school district <br />or agency of the State of Arkansas. There is no statutory limit on the <br />funds that can be requested on anyone project. <br /> <br />A fixed interest rate on the Bonds is not specified, but a maximum of 10 <br />percent per annum is set by the Authorizing Act. As the Arkansas Water <br />Resources Development Act of 1981 requires that each Bond issued be backed <br />by the full faith and credit of the State of Arkansas, only those projects <br />that have an extremely high probability of successfully repaying the Bond <br />issue will be approved. The Act requires that the State set aside from <br />General Revenues each year an amount equal to the debt service of all <br />Bonds outstanding. <br /> <br />Project proposals must be approved by the Governor after conferring with <br />the Legislative Council. If the Governor deems the issuance of the Bonds <br />to be in the public interest, he may issue a proclamation to the <br />Commission authorizing them to proceed with the issuance of Bonds as <br />provided in the Act. <br /> <br />The Municipal Bond Market - How It Works <br /> <br />Mr. Bob Cochran, Senior Vice President, Stifel, Nicolaus & Co., Inc., <br />Oklahoma City, discussed a variety of funding alternatives now available <br />to state and local entities to raise monies for public work proJects. He <br />explained that bonds sold can be either of a general obligation or <br />revenue type. General obligation bonds generally carry lower interest <br />rates due to the capability of securing them with ad valorem or property <br /> <br />7 <br />