Memorandum Construction Fund Workshop item b

• Board Meeting Date: 1/19/1999
• Description: Construction Fund Workshop item b, January 27-28, 1999 Board Meeting Water Project Construction Loan Program Altenative Funding Sources
• Board Meetings - Doc Type: Meeting

STATE OF COLORADO
Colorado Water Conservation Board
Department of Natural Resources
• 721 Centennial Building 4
1313 Sherman Street :N. ,j
Denver,Colorado 80203
Phone: [phone]
FAX: [phone]
Bill Owens
Governor
Greg E.Watcher
Executive Director,DNR
Peter H.Evans
Acting Director,CWCB
MEMORANDUM
TO: Colorado Water Conservation Board Members
FROM: William P. Stanton, P.E., Chief, Project Planning and Construction Section
Michael G. Serlet, P.E., Manager of Design and Construction
DATE: January 19, 1999
• SUBJECT: Construction Fund Workshop Item b. January 27-2 -
p y 8, 1999, Board Meeting
Water Project Construction Loan Program
Alternative Funding Sources
Introduction
This memo provides the basis for the start of a discussion of the audit recommendation to require
loan applicants to show they have explored alternative funding sources before the Board approves
or recommends a loan from the Construction Fund.
Background
Recommendation #3 of the 1998 Construction Fund Performance Audit was for the Board to
"require applicants to provide evidence that they have explored alternative funding sources prior
to approving the use of Construction Fund monies."
CWCB Response: AGREE. The CWCB staff currently insists upon evidence that applicants have
• explored other sources of funding in every loan application considered by the Board. The use of this
information is expected to raise implementation issues that deserve further consideration by the
Board and interested constituencies (e.g., what is the right balance between a borrowers need for
state assistance and the assurance of timely repayment?).