Finance Committee Meeting 2006

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

STATE OF COLORADO
Colorado Water Conservation Board
Department of Natural Resources /./oF-c
1313 Sherman Street,Room 721 '-
Denver,Colorado 80203 = F�
Phone:[phone]
FAX:[phone] .,*
www.cwcb.state.co.us
1876�`
MEMORANDUM Bill Owens
overnor
Russell George
TO: CWCB Finance Subcommittee Executive Director
FROM: Rod Kuharich
Rod Kuharich
DATE: September 19, 2006 CWCB Director
Dan McAuliffe
RE: Concept for Funding Projects of Statewide Concern and Project Deputy Director
Rehabilitation
The amount of income into the Severance Tax Trust Fund Perpetual Base Account is expected to
remain relatively steady for the next several years. While this income will be impacted by
refunds to energy producers based on the amount of local ad valorem taxes they pay, I believe a
conservative approach to accounting for this steady growth presents the Board with an
opportunity it has never had before—an opportunity to encourage the construction of"Projects
of Statewide Concern"and to rehabilitate degraded infrastructure.
Using this income will require a statute change to allow non-reimbursable investments to be
made from the Account. I intend to make a request for your authority to pursue this statute
change in next year's Projects Bill officially in November. I have attached a copy of this
proposed change for your convenience.
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.