CWCB Annual Report December 1995

• Year: 1995
• Title: Annual Report to the 60th Colorado General Assembly Second Regular Session
• CWCB Section: Agency-wide
• Publications - Doc Type: CF Annual Report

2.13 Construction Fund Criteria
In 1981 the Legislature adopted criteria for the use of the Construction Fund as set forth in ,
section 37-60-121 (1)(b), CRS. This criteria was changed in 1992 with the passage of SB 92-
87. Actions taken by the Board concerning the construction fund program have been in
compliance with those criteria. In particular, the Board has taken the following steps:
1. From 1981 through 1992, about two-thirds of the Board's cost of the projects
recommended were for projects which were expected to increase the beneficial
consumptive use of Colorado's compact entitlement. '
2. From 1981 through 1994, no applications for flood control projects were accepted by the I
Board.
3. No applications for domestic water treatment and distribution systems have been accepted
PP Y P
by the Board since March, 1981.
4. All feasibility studies initiated by the Board since the adoption of the criteria have
included, to the extent deemed necessary: an evaluation of water rights; an evaluation of
the engineering and economic feasibility of the project; and an evaluation of the economic,
social, and environmental effects.
I
2.14 Interest Rate Policy I
At the last Board meeting of each calender year, the Board sets a standard 30-year lending rate I
for Construction Fund projects which are to be recommended to the General Assembly in the
following year. The standard rate is 2-percent less than the average yield for 30-year U.S.
Treasury Bonds for the preceding 12 months. r
Lending rates are established for municipal, agricultural, and commercial projects. For
municipal projects, lending rates are established for low, medium, and high income service areas
based on median household income in the project sponsor's service area. Lending rates for
agricultural projects are identical to municipal low income rates. Lending rates for commercial
projects are identical to municipal high income rates.
For municipal low income areas, where median household income (MHI) is less than 80-
percent of the statewide MHI, the lending rate will be 20-percent below the standard rate. For
municipal medium income areas, where median household income (MHI) is between 80 and 110-
percent of the statewide MHI, the lending rate will be the standard rate. For municipal high ,
income areas, where the MHI is more than 110-percent of the statewide MHI, the lending rate will
be 10-percent above the standard rate.
CWCB Annual Report, page 12