BOARD04W

• Board Meeting Date: 9/13/2003
• Description: CF Section - Finance Committee Meeting
• Board Meetings - Doc Type: Memo

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POLICY NUMBER: 13

SUBJECT:

TARGET GROWTH RATE FOR THE COMBINED
EQillTY OF THE CONSTRUCTION FUND AND
SEVERANCE TAX TRUST FUND PERPETUAL BASE
ACCOUNT

EFFECTIVE DATE: October 1,2000

REVISED DATES: January 27,2004

POLICY:

The Colorado Water Conservation Board (CWCB) will attempt to
maintain an overall growth rate for the combined 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."

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 glVen year.

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

PROCEDURE:

The overall growth for the combined 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 various rates of growth in combined fund equity,
including the target growth rate. The estimate of funds available
for non-reimbursable investments will be the current combined
fund equity (as of the end of the most recent fiscal year), less the
previous year's combined 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
combined fund equity.

Approved by the CWCB
January 27,2004 Board Meeting
Agenda Item # 11