PROJC01774 (2) - Laserfiche WebLink

Home Browse Search

Page 2 increased to five million dollars. This five million dollars limit is now codified in Colorado statute. ~ 37-60-122(b), c.R.S, (2004). Recently, the projected cost of the Dry Creek Reservoir project has increased and the LTWD has requested an increase in funding by $4,200,000. This would bring the total loan amount given to LTWD to $8,137,500-which exceeds the Board's five million dollars approval limit. If the loan amount of$8,137,500 is treated as one loan, the Board would not have the authority to authorize the loan without the Legislature's approval. However, ifthe loan amount of$8,137,500 is treated as two loans-the first in the amount of$3,937,500 and the second in the amount of $4,200,000-then the Board could authorize the $4,200,000 loan without the Legislature's approval. DISCUSSION I. The Board can probably treat the loan to L TWD as two separate loans, each under the amount of five million dollars, and therefore not subject to approval by the Legislature. Section 37-60-122(b), C.R.S., states, "[t]he board is authorized to make loans without general assembly approval in amounts not to exceed five million dollars." All loans less than five million dollars come out of the Board's construction fund and, therefore, do not require the Legislature's approval. LTWD has previously been approved for a loan in the amount of$3,937,500 and has already drawn about two million dollars on that loan. Because the previous loan has already obtained legislative approval and because a good portion of the loan has already been drawn, the requested loan increase can probably be treated as a separate loan. If treated as a separate loan, the increase of $4,200,000 would fall within the Board's five million dollars approval limit and the approval of the Legislature would not be required.