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• Board Meeting Date: 7/21/2009
• Description: CF Section - General Fund Transfer Impacts to Finalcial Policies
• Board Meetings - Doc Type: Memo

executed contract. The intent of this policy is to utilize the funds in a timely manner and to
discourage borrowers from attempting to “guarantee loan funds for future long-range projects”.
With the reduction in monies available for new lo ans this change will assist the staff by keeping
the authorized projects moving towards comple tion. The recommended cha nge is to reduce the
time limit from 3 years to 2 years. Currently, approximately 70% of the loans approved by the
Board are under contract in a year and over 90% are under contract w ithin two years.
Policy No. 12
– Prioritization of Project Fund Applica tions from the Construction Fund and the
Perpetual Base Account
The Board approved Policy No. 12 at the N ovember 1997 meeting and amended it at the
September 2000 meeting. The policy attempts to prioritize funding requests from the two CWCB
accounts “in the event that the demand exceeds the available funds from either source in a given
year”. It is important to not e that this Policy was created when the Board reviewed loan
applications and Non-reimbursabl e Project Investment applicati ons only during the November
Board meeting each year. Currently the Board considers loan applic ations under $10 million
throughout the year. Now that funds are limited, ch anges to the Policy will be necessary.
Policy No. 14
– Approval and Prioritization of Constr uction Applications for Non-reimbursable
Project Investments
The Board approved Policy No. 14 at the January 2001 meeting. The policy attempts to prioritize
Non-reimbursable Project Investment applications from the Construction Fund. The applications
are received in August each y ear and are considered by the Finance Committee. The finance
committee recommends approval to the full Board in November and the approved Non-
reimbursables are then put into the CWCB Projec ts Bill. Due to the limited available funds the
Board will need to review the Policy and addres s the need to continue to fund projects and
programs that are expected each year and also the potential impact to leve raged federal funds if
state funds are not provided.
Discussion
The impact of the cash transfer will first be fe lt during the review of Non-reimbursable Project
Investment applications at the CWCB fina nce committee meeting in September 2009. The
Finance Committee makes recommendations to th e full Board in November and the approved
Non-reimbursables will then be put in the 2010 CWCB Projects Bill. The limited money
available for CWCB operations, critical progra ms, new loans, contributions to the DNR
Executive Directors Office, the Division of Wate r Resources, and other previously established
obligations will require CWCB to utilize its Financial Polic ies to prioritize funding.
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