BOARD00076 ‎(3)‎

• Board Meeting Date: 11/13/2006
• Description: Water Supply Planning and Finance Section - Referred Non-Reimbursable Investments
• Board Meetings - Doc Type: Memo

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POLICY NUMBER: 13

SUBJECT:

TARGET GROWTH RATES FOR THE EQUITY OF THE
CONSTRUCTION FUND AND SEVERANCE TAX TRUST
FUND PERPETUAL BASE ACCOUNT

EFFECTIVE DATE: October 1,2000

REVISED DATES: January 27,2004
September 14,2004

POLICY: The Colorado Water Conservation Board (CWCB) will attempt to
maintain an overall growth rate for the equity of the Construction
Fund and Severance Tax Trust Fund Perpetual Base Account
(STTFPBA) of no less than the long-term rate of inflation, as
established by appropriate construction cost indices, plus 0.5%.
This will be the "target growth rate" for each fund.

PURPOSE: To offset the impacts of cost inflation, to maintain the financial
integrity of the CWCB Construction Fund and STTFPBA and to
provide a process for estimating the financial resources available
for non-reimbursable investments from the Construction Fund in
any gIVen year.

APPLICABILITY: This policy and procedure apply to the CWCB Construction Fund
and STTFPBA.

PROCEDURE:

The overall growth for the fund equity of the Construction Fund
and STTFPBA will be presented as part of the Comprehensive
Annual Financial Report by CWCB staff at the September Board
meeting each year. Staff will present an annual estimate of funds
available for non-reimbursable investments relative to the target
growth rate. The estimate of funds available for non-reimbursable
investments will be the current fund equity (as of the end of the
most recent fiscal year), less the previous year's fund equity
increased by the target growth rate. At the same Board meeting
each year, staff will present a summary of long-term construction
cost indices with any recommendations for revisions to the target
growth rate in fund equity.

Approved by the CWCB
September 14,2004 Finance Sub-Committee Meeting