CWCB Construction Fund and Severance Tax Trust Fund Annual Report 1999

• Year: 1999
• 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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At its November 1997 Board meeting, the Board adopted a policy that"the Board and
the staff of the CWCB will attempt to maintain an overall, long-term rate of return of no
less than 4.0 percent on the aggregate amount of all loans and grants made through the
Construction Fund in order to offset the long-run impacts of price inflation and to
maintain the integrity of the Fund. " A procedure was developed based on detailed
rate-of-return calculations with the full repayment schedule for each loan and certain
simplifying assumptions to provide an estimate of the overall rate of return without
unnecessarily complicating the analysis. The analyses of loans and grants included in SB
99-173 indicated an overall rate of return of approximately 4.43 percent for Construction
Fund loans only and 1.91 percent for loans and grants.
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CWCB FY99 Annual Report,page 18