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1 <br /> In FY 1998, the CWCB recommended that the amount to be loaned to three previously <br /> authorized projects be increased by a total of approximately $1.05 million from the Construction <br /> Fund as indicated in the following table. <br /> TABLE 7 <br /> Increases in Previously Authorized Loans from the Construction Fund <br /> Recommended by the CWCB in FY 1998 <br /> $412,500 5 000•, 7::::::: <br /> City Greeley $ $787,500 <br /> Twin Lakes Res.Dam Rehabilitation <br /> ' Town of Palisade- HB 95-1155 $750,000 $172,000 $922,000 <br /> Cottonwood Cr.Pipeline Replacement* <br /> ' Purgatoire River Water Cons.District- SB 97-008 $500,000 $500,000 $1,000,000 <br /> Trinidad Project Refinance* <br /> Totals $1,662,500 $1,047,000 $2,709,500 <br /> I *Loan to refinance a water project wholly or partially completed. <br /> ' Loans from the CWCB Construction Fund or the Severance Tax Trust Fund Perpetual Base <br /> Account are plus or minus such amounts, if any, as may be justified by reason of ordinary <br /> fluctuations in construction costs as indicated by the engineering cost indices applicable to the types <br /> ' of construction required for each project, or as may be justified by reason of changes in the plans for <br /> a project due to differing or unforseen site conditions, errors or omissions in the plans and <br /> ' specifications, changes instituted by regulatory agencies, or changes in material quantities beyond <br /> contract limits. <br /> At its November 1997 Board meeting, the Board adopted a policy that"the Board and the staff <br /> of the CWCB will attempt to maintain an overall, long-term rate of return of no less than 4.0 percent <br /> on the aggregate amount of all loans and grants made through the Construction Fund in order to <br /> ' offset the long-run impacts of price inflation and to maintain the integrity of the Fund. " A <br /> procedure was developed based on detailed rate-of-return calculations with the full repayment <br /> schedule for each loan and certain simplifying assumptions to provide an estimate of the overall rate <br /> of return without unnecessarily complicating the analysis. The analyses of loans and grants included <br /> in HB 98-1189 indicated an overall rate of return of approximately 4.13-percent for Construction <br /> Fund loans only and 2.72-percent for loans and grants. <br /> 1 <br /> CWCB FY98 Annual Report,page 15 <br />