CWCB Construction Fund and Severance Tax Trust Fund Annual Report 1998

• Year: 1998
• Title: Construction Fund and Severance Fund Tax Trust Fund Annual Report
• CWCB Section: Agency-wide
• Publications - Doc Type: CF Annual Report

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2.7 Salinity Control Program Loan Account
SB97-008 authorized the Board to expend a cumulative total of $1,000,000 from the
Construction Fund for loans to participants in the Colorado River basin Salinity Control Program.
Such loans shall be at the terms and conditions the Board determines after review and approval of
each potential participant's application. The loan amount shall not exceed 50% of the total cost of
constructing any particular salinity control project. No loans have been considered by the Board,
and the balance in the account at the end of the fiscal year was $1,000,000. ,
2.8 Horse Creek Basin Loan Account
SB97-008 authorized the creation of the Horse Creek Basin Account in the Construction Fund
with an initial balance of$915,000. The Board was authorized to make loans from the account to
borrowers in the Horse Creek basin for the purpose of acquiring water rights. An initial loan of
$825,000 from the account was approved by the Board for the Horse Creek Water Users Association, 111 and contract negotiations have been completed. The remaing$90,000 was intended for another loan,
but was restricted by the controller due to a different interpertation in the language of the
Constructionn Fund bill. COFRS reported the balance of the account as zero at the end of the fiscal
year.
2.9 Litigation Account
Section 37-60-121 (2.5) (a), CRS, created the Litigation Account in the Construction Fund. 1
Under certain conditions,the Board is,authorized to expend up to $4.0 million from the Litigation
Account for litigation in support of water users whose water supply yield may be diminished as a
result of conditions imposed by any•federal agency on permits for existing reservoirs located on
federal lands. No lawsuits have yet been determined to meet the criteria.
The Litigation Account is not to be confused with the Reserved Rights Litigation Fund created '
in the State Treasury by the General Assembly in 1982 through SB 82-087. Authority for that fund
is found in the statutes at Section 37-60-121.1, CRS. I
Any interest earned by the Litigation Account is credited equally between the Construction Fund
and the Colorado Water Resources and Power Development Authority. The balance of the Litigation 1
Account was $4,000,000 on June 30, 1998.
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2.10 Colorado River Recovery Program Loan Account
Section 11 of HB98-1189 created in the State Treasury as part of the CWCB Construction Fund,
the Colorado River Recovery Program Loan Account. The purpose of the account is to make loans
to the Colorado River and San Juan River Recovery Programs for construction or improvement of
CWCB FY98 Annual Report,page 12 1