Finance Committee Meeting 2006

• Board Meeting Date: 9/19/2006
• Description: Finance Sub-Committee Meeting September 19, 2006
• Board Meetings - Doc Type: Meeting

If the use of the Account can be broadened to allow grants to be made,next year the
Board should request that the General Assembly appropriate money from the Account for
grants to match loans from the Account. This would provide a combination of non-
reimbursable and loan financing to the sponsors of projects that fit within the CWCB's
Construction Fund non-reimbursable project guidelines.
I am bringing this proposal to your attention one-year early because I recognize the need
to accelerate the construction of projects to develop,conserve and manage the state's
water resources—the same major components of the agency's mission. I also believe the
availability of severance tax revenues for such initiatives has finally reached the point
where such a funding request would not jeopardize the agency's cash management
strategy or prejudice its existing borrowers.
However,in order to make the financing effective and address the challenges we
currently face, as identified by the Statewide Water Supply Initiative(SWSI),much study
and discussion needs to occur about the terms and conditions placed on such financing.
The following is a brief discussion of the terms and conditions that could be attached to
the contracts signed by the recipients of our funds under these proposals:
Projects of Statewide Concern
To receive a 50/50 grant/loan for projects that fit within the CWCB's definition of
"projects of Statewide Concern"or the Construction Fund non-reimbursable guidelines
from the CWCB or the CWCB in partnership with the Colorado Water and Power
Development Authority,the applicant must:
1 Submit a signed Letter-of-Intent to borrow an amount of funding from the CWCB
that equals or exceeds the amount of non-reimbursable funding sought.
2 Agree to donate a portion of the developed water to the CWCB for the purposes
of future sale or lease for municipal,industrial or agricultural use or for
addressing compact calls,drought impacts,endangered species or state species of
special concern needs, instream flow,river restoration,recreation or other
purposes deemed appropriate by the CWCB.The donation would be in
accordance with a storage or other decree to be jointly sought by the owners and
the CWCB. The donation would be implemented through an operations agreement
enforced by the CWCB or the State Engineer.Dry-year provisions could also be
written into these agreements.
3 Complete a feasibility study,a non-reimbursable fmancing application for the
individual project and a donation agreement to be approved by the CWCB. The
cost of the feasibility study may be included in the total non-reimbursable
financing package.
4 Execute a loan contract within three-years or agree to be liable to repay the cost of
the non-reimbursable financing provided at an interest rate determined in
accordance with our existing loan policies by the CWCB at the time the project is
approved.
5 Other conditions the Board may require.