CWCB Construction Fund and Severance Tax Trust Fund Annual Report 1999

Home Browse Search

n f1 Preface Fiscal Year 1999 was a year of transition for the State of Colorado. Governor Owens took l office in January 1999 and shortly thereafter named Greg Walcher as the Executive Director of the Department of Natural Resources. In February, the new Executive Director appointed me to succeed the late Daries "Chuck"Lile as the Director of the Colorado Water Conservation Board „ (CWCB). Last spring, I appointed Dan McAuliffe as my Deputy and Mike Serlet as Chief of the CWCB's Water Supply Planning and Finance Program. These changes, together with three new CWCB Board members, newly elected legislative leadership, and a comprehensive performance audit by the Legislative Audit Committee continued to mold the future of the CWCB Construction Fund Loan Program. Following a 5-year period of significant improvement in the management and financial integrity of the Construction Fund, the September 1998 performance audit suggested continued opportunity to continue business-like administration of this essential program. With the eighteen -! audit recommendations as a guide, the CWCB completed clarification of several program policies in the areas of feasibility studies, collateral, loan collections,project time limits, and creditworthiness analysis. These policies, together with additional support in project accounting -,,I and contract compliance, have provided a new foundation layer to an experienced complement p p and professional staff. Despite the aforementioned policy, personnel, and administrative changes influencing the Construction Fund Program, the existing staff maintained its high standard of customer service Ithat has been the hallmark of this very unique program over the recent years. Eighteen projects were completed in FY99 worth more than$20 million in loans impacting over 80,000 acre feet of water supplies. Additionally, almost$4 million in project planning and technical studies were Ifunded, and/or commenced,utilizing the resources available from the Construction Fund. I The Severance Tax Trust Fund Perpetual Base Account was needed again this year in supplementing the Construction Fund as a new source of water supply project loan funds. As Colorado grows, our water supply infrastructure will require continual improvement and the I potential harm associated with future droughts could increase rapidly. Our initial survey results indicate that fewer than 5% of our communities, irrigation districts, and businesses have a realistic plan for"surviving" a significant, sustained drought. The CWCB is initiating programs I to support local basin planning in each watershed and drought planning at the community level. These programs are likely to identify many needs, ranging from education to new projects to river channel restoration, that may depend upon state funding. IThe funds available through the Severance Tax Trust Fund accounts are quickly being appreciated by the CWCB and the water community as an important supplement to our ' Construction Fund as we work with the Governor, the General Assembly, the Colorado Water Congress and many others to meet Colorado's dramatically increasing needs. ICI)CAV fv44" Peter H. Evans ICWCB Director CWCB FY99 Annual Report,page 3 I