29a-e

• Board Meeting Date: 11/19/2008
• Description: CF Section - Referred Non-Reimbursable Investments
• Board Meetings - Doc Type: Memo

POLICY NUMBER: 13
SUBJECT: TARGET GROWTH RATE FOR THE COMBINED
EQUITY OF THE CONSTRUCTION FUND AND
SEVERANCE TAX TRUST FUND PERPETUAL BASE
ACCOUNT
EFFECTIVE DATE: October 1, 2000
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 %.
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 given year.
APPLICABILITY: This policy and procedure apply to the CWCB Construction Fund
and STTFPBA.
PROCEDURE: The overall growth rate 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 grants relative to various rates of
growth in combined fund equity including 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
September 25, 2000 Board Meeting
Agenda Item # 13 d