BOARD00163 ‎(2)‎

• Board Meeting Date: 5/22/2007
• Description: CF Section - Financial Matters - New Loan Lending Rate Structure for FY 2008
• Board Meetings - Doc Type: Memo

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STATE OF COLORADO

Colorado Water Conservation Board

Department of Natural Resources
1313 Sherman Street, Room 721
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
www.cwcb.state.co.us

Bill Ritter, Jr.
Governor

Harris D. Sherman
Executive Director

MEMORANDUM

Rod Kuharich
CWCB Director

TO:

Colorado Water Conservation Board Members

Mike Serlet, P.E., Chief ~d
Water Supply Planning and ~m:ce Section

Dan McAuliffe
Deputy Director

FROM:

DATE:

May 11,2007

SUBJECT:

Agenda Item #4 - May 22-23, 2007 Board Meeting
Water Supply Planning and Finance Section - Financial Matters
New Loan Lending Rate Structure for FY 2008

Introduction

This memorandum provides a summary of interest rates for the last six months and the staff
recommendation for a lending rate structure for CWCB lending programs for the next twelve months.
The process for determining the interest rates is in accordance with the Board's Financial Policy #7 -
Annual Construction Fund and Severance Tax Trust Fund Perpetual Base Account Lending Rate
Determination.

Discussion

Attached is a graph of weekly yields for the 30-year "A" rated municipal bond for the period
November 5, 2006 to April 29, 2007.1 As the graph indicates, the average yield for the municipal
bond was 4.254 percent for the past six-month period.

1 Standard & Poor's definition of an 'A' bond rating is: "A debt rated' A' has a strong capacity to pay interest and repay
principal although it is somewhat more susceptible to the adverse effects of changes in circumstances and economic
conditions than debt in higher rated categories."

Flood Protection. Water Supply Planning and Finance. Stream and Lake Protection
Water Supply Protection. Conservation and Drought Planning