17 ‎(5)‎

• Board Meeting Date: 5/21/2008
• Description: CF Section - Financial Matters - New Loan Lending Rate Structure for FY 2009
• Board Meetings - Doc Type: Memo

Colorado Water Conservation Board ~ ~~~~~~

Department of Natural Resources ~.~
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1313 Sherman Street, Room 721 ~
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Denver, Colorado 80203 ~~} ~
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Phone: [phone] - ~` +y~p
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FAX: [phone] ~ ~
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www.cwcb.state.co.us ~
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Bill Ritter, Jr.
Governor
Harris D. Sherman
T0: Colorado Water Conservation Board Members Executive Director
Jennifer Gimbel
FROM: Mike Serlet, P.E., Chief CWCB Director
Water Supply Planning and Finance Section Dan McAuliffe
Deputy Director
DATE: May 9, 2008
SUBJECT: Agenda Item #17 -May 20-21, 2008 Board Meeting
Water Supply Planning and Finance Section -Financial Matters
New Loan Lending Rate Structure for FY 2009
Tntrnr~»r~tinn
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.
Recommendation
Staff recommends that the Board adopt the schedule of 30-year lending rates based on the
Board approved Financial Policy #7, as shown in Table 1 for all loans recommended to the General
Assembly or approved by the Board from July 1, 2008 through June 30, 2009.
Tai c~» ~ci nn
Attached is a graph of weekly yields for the 30-year "A" rated municipal bond for the period
November 4, 2007 to April 27, 2008.1 As the graph indicates, the average yield for the municipal
bond was 5.08 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