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1 <br /> 6 Evaluation of Actions Taken on Colorado Water Conservation Board as of December 1999 1 <br /> General Assembly to make the statutory changes needed to reduce the cash balance of the I <br /> Construction Fund. <br /> Water Conservation Board's Report Response I <br /> P p <br /> (September 1998): <br /> I <br /> Agree. The CWCB staff will incorporate consideration of the severance tax funds <br /> and current interest rates in the next revision to the Long-Term Financial Projection by <br /> January 1, 1999. Although the basic methods used in estimating revenues,fund balance,and <br /> needs are sound,there are many assumptions and predictions that must be made in applying <br /> these methods (e.g., interest rates and construction schedules). These factors are expected <br /> to illuminate a variety of policy issues, including the desired duration of the funding <br /> assistance and the committed and uncommitted cash balance needed to serve the existing and <br /> future purposes of the Fund. These issues deserve further consideration by the Board and I <br /> the interested constituencies before further legislative direction is considered. Revision of <br /> the Long-Term Financial Projection has been delayed for over a year based upon interest <br /> expressed by the Board and many legislators in conducting regional water supply planning <br /> meetings around the State to test our forecasting of future project needs. <br /> It is important to note, however, that the demand for funding to develop Colorado's water <br /> I <br /> resources is increasing. The future need for funds to develop Colorado's water resources is <br /> demonstrated by recent studies by the CWCB, the Colorado Farm Bureau, and the support <br /> for House Bill 98-1288 (the proposed Water Resources Act of 1988, which was postponed I <br /> indefinitely, but is expected back next session). The proponents of House Bill 98-1288 <br /> estimated that as much as$100 million might be needed to motivate the necessary planning <br /> at the local or regional level. Local water providers and local governments will need a II <br /> significant amount of additional funds to develop the water supply improvements and <br /> mitigate the impacts that are likely to be recommended in local plans. I <br /> Implementation Date: January 1999. <br /> Water Conservation Board's Update (October 1999). <br /> 1 <br /> In progress. A revised Long-Term Financial Projection Model has been developed by I <br /> Andersen Consulting that will be reviewed by the CWCB Board at its January 2000 Board <br /> meeting. The CWCB staff will convene regional water supply planning meetings during late <br /> 1999 and early 2000 to determine future water project needs. Information developed from <br /> these meetings will be used to determine the required cash balance of the Construction Fund. <br /> I <br /> I <br /> I <br />