Finance Committee Meeting 2009

• Board Meeting Date: 9/15/2009
• Description: Finance Sub-Committee Meeting September 15, 2009
• Board Meetings - Doc Type: Meeting

ATTACHMENT—SUPPORTING JUSTIFICATION FOR APPROVAL OF REQUEST
The CWCB Construction Fund Non-Reimbursable Investment Program is guided by CWCB 411
Policy#13, adopted September 25, 2000. According to a strict interpretation of this policy,
funds are not available this fiscal year for non-reimbursable investments. However, this request
for program funding is explicitly requesting an exemption from this policy.
The exemption request is based on public health and safety issues. The Flood Response Program
(Program) is the single funding source used to respond to flood events,both major and minor.
Funds from the Program are used to support on-site technical expertise, both staff and
contractual, as well as important data collection following a flood. This data is used to more
effectively improve flood preparedness and mitigation activities for future events, and is a
critical input in the request for outside post-disaster assistance from FEMA and other agencies.
The Flood Response Program has been acknowledged by public officials in recent years,when
flooding has been viewed as imminent or likely. Members of the Colorado General Assembly
have commented publicly that the Program should be maintained and properly utilized for the
sake of public health and safety of the citizens of Colorado.
Flooding is the most common natural disaster within the state. A study undertaken in 2003
indicated that in 2003 dollars, the average annual losses due to flooding since 1900 are over$50
million. The lack of major floods in the past ten years has done nothing to diminish the flood
threat throughout the state.
It should be emphasized that this request is for a refresh of the ongoing program up to $300,000, •
as opposed to a simple $300,000 request. In many years, the refresh amount is significantly
smaller, indicating that a large portion of the fund may go unused and be carried over to the next
year. It should be noted that the unused amount should not be viewed as unneeded funds.
Rather, in any given year, the majority of the Program funds are held in reserve in case of an
unexpected flood event happening so that funds are available to be spent on an emergency basis.
When no flood event happens, these monies are not spent and will then reduce the amount of the
request in the following fiscal year.
For these reasons, Staff is requesting an exemption to CWCB Policy#13 on the basis of public
health and safety for this request.
2