BOARD00112 ‎(2)‎

• Board Meeting Date: 1/23/2007
• Description: Water Resources and Power Authority Director's Report
• Board Meetings - Doc Type: Memo

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COLORADO WATER RESOURCES &
POWER DEVELOPMENT AUTHORITY

Logan Tower Bldg. - Suite 620, 1580 Logan Street, Denver, Colorado 80203-1942
303/830-1550 · Fax [phone] · [e-mail]

MEMORANDUM

January 23, 2007

TO:

Members, Colorado Water Conservation Board, and Rod Kuharich

FROM:

Daniel L. Law, Executive Director

RE:

Director's Report

See attached table for loans executed in 2006.

Water Pollution Control Revolving Fund

As indicated on the attached table, ] 9 WPCRF loans ($52.5 million) were executed in 2006. Nine of the loans were
made under the Disadvantaged Communities Loan Program which was initiated in 2006. Under this program,
communities with median household incomes ("MHI") between 6] and 80 percent of the State MHI are eligible for
loans with interest rates at 50 percent of the direct loan rate (3.75 percent for 2006) and for communities with an
MHI below 61 percent of the State's MHI, the communities are eligible for an interest-free loan. In December the
Board decided to maintain the direct loan rate at 3.75 percent for 2007.

Through 2006, the Authority has received $203 million in capitalization grants from the U.S. EPA. The 2007 grant
is expected to be $5.5 million. By leveraging the capitalization grant funds, the Authority has provided $692 million
for 139 loans.

In 2007, projects will be added and deleted from the WPCRF project eligibility list by means of House Joint
Resolution 07-] 005 (HJR07-1005). The joint resolution will add] 6 projects, modify the project descriptions of 30
projects and delete 5 projects. If the resolution is passed, the resultant WPCRF Project Eligibi]ity List will contain
279 projects with an identified funding need of over $1.5 billion.

The WPCRF loan capacity is estimated at $45 million for 2007, and it is expected that this capacity will be fully
utilized based on priority needs. To supplement this loan capacity for 2007, the Board has authorized up to $750,000
in cost of issuance subsidy under the Water Revenue Bond Program for those communities eligible for a WPCRF
loan but not having sufficient priority to receive funding.

Drinking Water Revolving Fund

In 2006, 21 DWRF loans ($64.3 million) were executed. Nine of the loans were made under the Disadvantaged
Communities Loan Program. This program, created in 2005, operates under the same criteria as the WPCRF
program mentioned above, with the only difference being the maximum loan term (DWRF - 30 years, WPCRF - 20
years).

Through 2006, the Authority has received $] 25.8 million in capitalization grants from the U.S. EPA. The 2007
grant is expected to be $14.5 million. By leveraging the capitalization grant funds, the Authority has provided $272
million for 89 loans.