BOARD00081 ‎(2)‎

• Board Meeting Date: 11/14/2006
• Description: WSP Section - Native Species Conservation Trust Fund Recommendations for FY 2007-08
• Board Meetings - Doc Type: Memo

Agenda Item] 6, Native Species Conservation Trust Fund Recommendations
November] 3-] 5, 2006 Board Meeting
Page 3 of 4

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2. Colorado Division of Wildlife Recommendation: Sufficient funding from the SCTF O&M
Account to support a $400,000 annual program
The CDOW species conservation program is responsible for maintaining the health of900+
species. Currently the CDOW expends $7 million per year (excluding land acquisitions associated
with species conservation) on species conservation work, concentrated on about fifty specific
species. The CDOW species conservation projects are generally multi-year, ongoing projects.
Annual funding is essential to their success and the CDOW believes that as a rule only the interest
generated each year by the funds in the SCTF O&M account should be used to fund projects. If a
portion of the principal is used each year to fund projects, it should be based on no less than a ten-
year amortization of the funds in the O&M account. Last year the CDOW requested a dedication of
$3.5 million in the SCTF O&M account, which was not approved, had it been approved and
assuming a ten-year amortization, such would have supported ongoing species conservation projects
of approximately $400,000 per year.
The Wildlife Commission has not yet made a recommendation for FY 07-08 funding, but it is
anticipated they may make a similar request.

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3. Colorado Department of Natural Resources Recommendation: $80,000 for implementation of
Habitat Conservation Pia" for Southwestern Willow Flycatcher in the San Luis Valley, through
tile Rio Grande Water Conservation District.
DNR has provided two matching grants for the federal funding for this Plan. This funding
will go toward finalizing the plan and initiating implementation and conservation efforts, including
completion of baseline monitoring, work with land trusts and NRCS, and outreach to agricultural
and conservation stakeholders in the Valley.

Discussion

The capital account currently contains all the appropriated funds necessary to meet the cost
share requirements in full for both the UCRIP and SJRIP. With the signing of the recovery program
developed under the CA, Colorado now has an estimated cost share obligation of $24,000,000 under
the 151 increment of the program. An appropriation of $5,000,000 was made from the SCTF last
year, but an additional $19,000,000 is still required. Secondly, the CD OW would like to see
sufficient funding left in the SCTF O&M account each year to support an annual on-going species
conservation program of $400,000. Finally, $80,000 is needed to continue implementation of
Habitat Conservation Plan for Southwestern Willow Flycatcher in the San Luis Valley

DNR is working with the State Office of Planning and Budget to add additional funds to the
SCTF and it has been suggested that upto $19,000,000 be requested in single Bill with the
understanding that the capitalization of and allocations from the SCTF may occur over a 3-year
period. The split between the SCTF Capital and O&M accounts will depend in part on the
appropriations made to the SCTF each year with approximately $5,000,000 going to the Capital
account and $19,000,000 going to the O&M account over the term of the 1 SI increment. It is
expected that most ifnot all of any additional funding will come from Severance Tax this fiscal year;
however, General Funds may also be requested. We are hopeful that the SCTF can be replenished to
levels that make as much of the Platte Program cost share obligation available this year in order to
avoid the increased costs associated with inflation.

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Flood Protection. Water Project Planning and Financing. Stream and Lake Protection
Water Supply Protection. Conservation Planning